Gold futures dropped in value on Friday, falling south of the benchmark price of $1,650 per troy ounce as investors cashed in on the recent upward drive of the shared currency of the European Union, Reuters reports.
Nonetheless, The Economic Times reports the yellowish metal is hurtling toward a third consecutive week of gains. For each week of the new year thus far, gold futures have gained in value, a stark contrast to the 10 percent losses the precious metal endured during the month of December.
"There are a lot of reasons still to buy gold, but I think it's fair to say that with risk fatigue setting in, a little bit of price sensitivity coming through, and the dollar likely to show some strength, the gains for gold in the current environment are probably less exciting than they were," analyst David Jollie with Mitsui & Co Precious Metals told Bloomberg.
At 7:26 a.m. on Friday, gold futures dropped 0.51 percent, an $8.40 fall to $1,646.10 per troy ounce.
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.