Gold futures forecast to gain in November

Gold futures remained well above the threshold price of $1,700 per troy ounce on Thursday, according to Reuters.

But the value of the yellowish metal is likely to be impacted by the U.S. employment report set for release on Friday.

As U.S. stocks gained in value when the first trading session of the month of November began, the U.S. dollar slipped against rival monetary units. The U.S. dollar and bullion typically perform the inverse of one another.

One senior broker noted that the precious metal's performance last month was consistent with its past record, also noting silver futures followed suit.

"The heavy metals or hard currencies still appear to be working through their October consolidations," senior broker Kurt Pfafflin with Daniels Trading said late last month. "This month, which is seasonally the worst performing month of the year, has been true to form as we’ve seen gold come off nearly $100 (or -5.5 percent) since hitting a yearly high of $1,798 on the 1st of October while silver has been knocked down nearly $4 (or -11 percent) from its high just above $35."

At 12:26 p.m. on Thursday, gold futures fell 0.06 percent, a $1 loss to $1,718.10 per troy ounce. At 12:27 p.m., silver futures increased 0.2 percent, a 0.064 cent gain to $32.38 per troy ounce.

Strength faded early
The yellowish metal was barely south of the milestone price of $1,800 per troy ounce early in October, which was prompted by the U.S. Federal Reserve announcing in September it would implement a third round of monetary easing by purchasing debt.

The purchase of assets floods the market with dollars, which pulls down the value of the dollar. Consequently, the value of the yellowish metal gained.

Increased discussion about the fiscal cliff being imminent in the U.S. also boosted the price of gold in September and early October.

But the remainder of the month of October saw the price of gold gradually slip.

The onset of monthly losses
Despite gains on Wednesday, the final day of the month of October, gold marked losses of roughly 3 percent during the first month of the final quarter of the year, according to MarketWatch.

But, nonetheless, that is not as big a deal, the senior broker with Daniels Trading said.

Rather, corrections are good for the yellowish metal, he said.

"But anytime you get a pullback like this, it creates fear and uncertainty amongst both traders and investors," Pfafflin said. "They start to ask themselves: How far will this selloff go and where do we go from here? I view these downward moves as simply part of a typical, healthy consolidation process. I don't believe we're going to be falling much lower into a deeper correction."

Losses to the yellowish metal in October snapped four consecutive months of gains.

Upward prospects
China, host of the globe's second largest economy, last month saw manufacturing develop for the first month in the past three, Bloomberg reports. That economic data is likely to be beneficial to the yellowish metal as it barrels toward a third consecutive day of gains.

Bullion has increased just short of 10 percent thus far this year as the precious metal barrels toward a 12th consecutive year of annual gains.

A strong performance in November would increase the likelihood that gold will achieve a 12th consecutive year of gains.

And this month traditionally has been beneficial to the yellowish metal, according to the senior broker.

"Over the past 11 years, the month of November has been the best-performing month, so we won’t have to wait too long to find out whether that will continue to be the case or not," Pfafflin said.