Gold futures sank below the $1,800 per troy ounce threshold amid efforts to inject liquidity into European banks reduced demand for bullion as a storage haven, Dow Jones Newswires reports.
Beleaguered euro zone banks are to receive injections of dollars as one strategy to strengthen the institutions victimized by the sovereign debt crisis and that news prompted stocks to rally according to Reuters. Gold's allure as an asset haven slipped as the precious metal has fallen to its lowest level in three weeks.
"There's just too much headwind here for gold with stocks performing so well," Vice President George Gero with RBC Capital Markets Global Futures told Dow Jones Newswires.
At 9:12 a.m. on Friday, gold futures gained 0.48 percent, an $8.50 climb to $1,789.90 per troy ounce.
Thus far this year, gold futures have gained 26 percent as the precious metal hurtles toward an 11th consecutive year of annual gains. When gold futures notched the record price of $1,923.70 per troy ounce during the first week of the month, the precious metal had achieved annual gains of roughly 36 percent.
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.
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.