• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Daniels Trading

Independent. Objective. Reliable.

Top Navigation

  • Open a Futures Account
  • Sign Up
  • Log in
  • 1.800.800.3840

Primary Navigation Menu

  • About
    • Who We Are
    • Services
    • Careers
    • Risk Disclosure
    • COVID-19
  • Trade
    • Broker-Assisted
    • Self-Directed / Online
    • Request Pricing
  • Hedge
    • DanielsAg Mobile App
    • Ag Marketing Plan
    • WASDE Analysis
    • Grain Resources
    • Livestock / Dairy Resources
    • Hedging Videos
    • Request Pricing
  • Invest
    • Automated Strategies
    • Managed Futures
    • Request Pricing
  • Advisories
    • GENERAL / FUNDAMENTAL
      • DT Newsletter
      • Insider Market Advisory
      • Turner’s Take Newsletter & Podcast
    • TECHNICAL ANALYSIS
      • The Cullen Outlook
      • Data Feed Trade
      • Jarboe Trading Journal
      • Trade Spotlight
    • AG MARKETING
      • Cattleman’s Advisory
      • The Swine Times
      • Technical Ag Knowledge
      • This Week in Grain
      • Turner’s Take Ag Marketing
    • THIRD-PARTY RESOURCES
      • CFRN
      • Moore Research Center, Inc. (MRCI)
      • OptionWorks®
      • TASMarketProfile.com
  • Education
    • CME Group Resource Center
    • Small Exchange Resources
    • Guides
    • Frequently Asked Questions
    • Order Entry Handbook
    • Webinars
  • Blog
    • Futures 101
    • Ag Marketing
    • Tips & Strategies
    • Trading Advisories
  • Resources
    • Trading Software
    • Quotes and Charts
    • Futures Calendars
    • Contract Specifications
    • Margin Requirements
    • Futures Calculator
  • Accounts
    • GAIN Capital Futures
    • StoneX
  • Contact
Home / Futures Blog / Gold futures fall from seven-month highs

Gold futures fall from seven-month highs

October 2, 2012 by Daniels Trading

Worries about the reduced pace of demand from Asia pulled gold futures from their highest values in 10 months on Tuesday, according to Bloomberg.

India, the globe's largest consumer of the yellowish metal, dropped 56 percent during the second quarter of this year, the World Gold Council said. More tepid demand for the yellowish metal has been in place in India since the middle of last month, according to a report penned by Standard Bank and cited by Bloomberg.

The report also noted demand for gold was at its weakest in more than one year.

"While the market has been going up on the stimulus fever, lack of support from physical demand is putting some pressure on prices," commodity strategist Marc Ground with Standard Bank in Johannesburg told the news source.

At 1:34 p.m. on Tuesday, gold futures fell 0.41 percent, a $7.40 loss to $1,775.90 per troy ounce.

Q3's sharp gains
Bullion achieved increases in value of 11 percent from the beginning of July through the end of September, Bloomberg reports.

Those increases represent the biggest advance since the second quarter of 2010.

The primary driver of the yellowish metal's advance during the third quarter of this year was Chairman Ben Bernanke with the U.S. Federal Reserve announcing the institution would implement a third round of monetary easing.

The precious metal also suffered losses as Spain inched closer to requesting bailout aid.

Madrid solicitation imminent?
Debt-hobbled Spain has been the subject of significant speculation about when it will request international bailout aid, according to MarketWatch.

The news service cited a report stating Spain might request bailout aid as soon as this weekend, but Prime Minister Mariano Rajoy said the nation he leads is not on the brink of requesting aid.

As the sovereign debt crisis nears a third year of ravaging banks, markets and public finance systems in the euro zone, Spain would follow Greece, Portugal and Ireland, all of which already have requested bailout aid.

The euro has been pressured by the sovereign debt crisis, and the precious metal tends to track the euro's performance.

Chicago Fed President Evans' commentary
Gold futures drove to their top value on Monday since February after President Charles Evans with the Federal Reserve Bank of Chicago issued remarks perceived as dovish, MarketWatch reports.

During an interview with CNBC, Evans said the third round of asset purchasing is forecast to run for another 12 months minimum in order to be effective.

"I frankly think it is going to take almost a year to see the type of improvements in labor markets that I am expecting, just getting through the first half of next year with the headwinds that we're facing, I think that it's probably later in 2013 that we would get there, so in my opinion, we'd continue with those asset purchases until we see payroll employment more like 200-250,000," Evans told the news source.

Flooding the market with dollars when purchasing debt tends to draw down the currency's value, which in turn pushes up the precious metal's value.

U.S. jobs report awaited
Expectations are high for the U.S. Department of Labor's jobs report for September, which is set for release later this week, according to Reuters.

Creating jobs and tackling the nation's unemployment rate is the top priority of the third round of quantitative easing.

"We do have this conditional QE and it is conditional on employment growth, and the employment growth release therefore must be more important than ever. So we are waiting for that," analyst Matthew Turner with Mitsubishi told the news source.

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.

Filed Under: Archived News

About Daniels Trading

Daniels Trading is an independent futures brokerage firm located in the heart of Chicago’s financial district. Established by renowned commodity trader Andy Daniels in 1995, Daniels Trading is built on a culture of trust committed to the firm’s mission of Independence, Objectivity and Reliability.

Primary Sidebar

Get Blog Updates

Subscribe to our blog and receive a daily email with information on market insights, trading tips & strategies.

Trustpilot

Footer

Site Navigation

  • Frequently Asked Questions
  • About Us
  • Customer Reviews
  • Contact Us
  • Futures Blog
  • Open a Futures Trading Account
  • Media Resources
  • Fund Your Account
  • Legal Notices

Contact Us

Daniels Trading
100 South Wacker Drive, Suite 1225
Chicago, IL 60606
+1.312.706.7600 Local / Int'l
+1.800.800.3840 Toll-Free
+1.312.706.7605 Fax

Connect with Us

Trustpilot

Copyright © 2021 · Daniels Trading. All rights reserved.

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.

  • Risk Disclosure
  • Privacy Policy
  • California Residents Privacy Notice
  • Terms of Use
  • Back to top