The World Gold Council indicated in a Thursday report that worldwide demand for the yellowish metal fell 11 percent during the third quarter as compared to one year prior, which amounted to a decline of 1,084.6 metric tons. The reduced pace of development and growth in China helped reduce investments and the acquisition of jewelry.
"Risk appetite is generally subdued," commodity strategy head Ole Hansen with Saxo Bank A/S in Copenhagen told the news source on Thursday, noting not all is bad for the precious metal's near-term prospects. "The dollar index, trading near a two-month high, is creating headwinds, while the ongoing fiscal cliff concerns support gold."
At 9:41 a.m. on Thursday, gold futures fell 0.31 percent, a $5.28 loss to $1,721.07 per troy ounce.
Reuters reports bullion also was impacted by economic data indicating the euro zone's prospects for growth and development have been harmed by the sovereign debt crisis.
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.