Gold futures were edging down in value on Friday, pulled south by the downward tack of the shared currency of the European Union, Reuters reports.
Despite Friday's losses, the precious metal is set to notch its largest rise during a two-week period in eight weeks. Thus far this year, gold futures have gained roughly 5 percent, which follows the precious metal's dive of 10 percent in value during the month of December.
"I'm always a bit suspicious of interpreting too much of price action in the first couple of weeks of a new year. It's not typically very fundamental," analyst Michael Lewis with Deutsche Bank told the news service. "It could well be valuational momentum that is driving these moves rather than anything else."
At 6:42 a.m. on Friday, gold futures slipped 0.35 percent, a $5.80 drop to $1,641.90 per troy ounce.
Bloomberg reports mainland Chinese imports of bullion from Hong Kong during the month of November set a record, which is helping to drive gold traders' pursuit of bullion. Mainland China imported nearly 102.8 metric tons of gold.
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.