The first trading session of the second quarter of 2012 kicked off Monday with gold futures slipping, according to Reuters.
The yellowish metal's performance followed that of crude oil as slippage in value to the U.S. dollar prevented bullion's larger losses.
"Recently prices have been driven strongly by speculative sentiment and it is not surprising to see those pullbacks," analyst Eugen Weinberg with Commerzbank told the news service. "But in the longer term, we still stay very confident that the upward trend in gold is still very constructive. We will continue to see buying on the dips, although on the demand side we had a couple of setbacks, especially from India with the strikes. But I think in the longer term, gold will perform even more like a currency, and be less dependent on the jewellery sector."
At 7:34 a.m. on Monday, gold futures fell 0.3 percent, a $5 loss to $1,666.90 per troy ounce.
The Economic Times reports the dollar index was just above its lowest rate in almost one month, which was touched late last week when the value of the shared currency of the European Union rallied.
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.
