Gains for the yellowish metal were linked with losses to the U.S. dollar and bullion's luster shining again for investors attracted them to the metal while it was situated at its lowest price in six weeks. Pulling down the metal on Friday, when it fell 1.8 percent, were underwhelming corporate earnings reports as investors' interests gravitated toward the U.S. dollar.
"The market was very long up at around $1,800 and we've seen some of the length being unwound," analyst Tom Kendall with Credit Suisse told the news source. "I suspect more will be reducing positions and a lack of any tremendous desire to buy at this level. The path of least resistance is still lower."
At 11:31 a.m. on Monday, gold futures gained 0.12 percent, a $2.10 lift to $1,726.10 per troy ounce.
Bullion's poor performance on Friday dragged down the metal to its lowest value in roughly six weeks, Bloomberg reports. Also impacting the price of gold futures was slumping economic data about China.
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.