Speculation also said investors were preparing to unload the yellowish metal, which came less than 2 percent of the all-time record high of $1,577.40 per troy ounce early last month. One observer, economist and author Dennis Gartman of the Gartman Letter, said the commodity's steep dive on Thursday exposes "even more severe weaknesses" that will bring the metal lower than $1,480 per troy ounce within weeks.
"We rose too far, too fast," according to an email from investor Jim Pogoda, formerly a precious-metals trader for Mitsubishi International. Despite that belief, he said, "the bullish arguments – euro-zone debt fears, continued unrest and potential for spreading in the Middle East and north Africa region, and poor long-term prospects for the dollar – remain intact."
At 8:32 a.m. on Friday, gold futures climbed 0.15 percent, a $2.30 increase to $1,535 per troy ounce.
The dollar rose in value, which typically pushes down gold futures' price, MarketWatch reports.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.