Gold's downward drive continued on Thursday as investor demand eroded while the financial markets stabilized, according to Bloomberg.
The precious metal has taken its steepest dive in 18 months: more than 3 percent of its value. Having exceeded the $1,900 per troy ounce threshold earlier this week, bullion dropped below $1,800 per troy ounce and was struggling to stay above the $1,700 per troy ounce threshold.
"Gold is a trade, gold is a position, gold is volatile, but gold is not safe," economist and editor Dennis Gartman wrote in the Thursday edition of The Gartman Letter out of Southeast Virginia. "The public is involved in gold, and the cab drivers of the world have bought into it. Now they are being taken out, at high cost."
At 9:06 a.m. on Thursday, gold futures slipped 1.17 percent, a $20.50 drop to $1,736.80 per troy ounce.
The New York Times reports gold's losses are symptomatic of stock markets that are gaining strength and stabilizing as the publication cited gold's attribute as a safe investment during rough economic and financial times.
Since July, gold futures have been gaining in value as the precious metal is driving toward 11 consecutive years of annual gains.
Risk Disclosure
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.
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 trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
