Investors continue looking for indications about whether the U.S. Federal Reserve will end the monetary stimulus program that officials are deploying to spur the globe's largest economy. The yellowish metal increased in value early during the Tuesday session after enduring its biggest monthly loss during the second quarter since the late 1960s.
"The dollar index is strengthening quite a bit, equities are strengthening and you're seeing interest rates go up. That seems to be the perfect storm against the metal at the moment," senior commodities broker Phillip Streible with R.J. O'Brien in Chicago told Reuters on Tuesday, noting the poor performance as of late is prompting sellers to unload their holdings.
At 1:45 p.m. on Tuesday, gold futures fell 0.58 percent, a $7.24 loss to $1,245.28 per troy ounce.
Bloomberg reports Danske Bank A/S, which the news service considers to be the most accurate forecaster of the precious metal during the past 24 months, projects the yellowish metal will drop to $1,000 within 90 days.
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.