As the afterglow of the 1 trillion euro European Financial Stability Facility waned, the precious metal dropped while the U.S. dollar gained roughly 0.4 percent when compared to six counterpart monetary units, according to Bloomberg.
"We had a really heavy week on the news front with the euro zone and U.S. GDP … the market's trying to work out where gold should be, wondering if this euro zone package has solved the problem," analyst Matthew Turner with Mitsubishi told Retuers. "There's been some euphoria all week, but now some people are saying the details are a bit sketchy. The problem is no one's quite sure what this means for gold. If it is trading like a risk asset then it should go up if skepticism sets in about the euro zone rescue."
At 11:11 a.m. on Friday, gold futures fell 0.15 percent, a $2.70 drop to $1,745 per troy ounce.
Though Friday's performance was on the weaker side, gold is driving toward its strongest weekly performance in two months, according to Reuters.
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.