The emboldened U.S. dollar on Monday tugged down gold futures on Monday as the yellowish metal's five consecutive trade sessions of losses is its worst bearish trend since May, according to Bloomberg.
The world's reserve currency advanced as high as 0.4 percent against the shared currency of the European Union, prompting bullion to dive. The dollar and the precious metal typically perform the inverse of one-another. Thus far this year, gold is down roughly 22 percent while the dollar has surged 4.3 percent against its top counterparts.
"The dollar's strength against the euro is pushing gold lower," vice president David Lee with Heraeus Precious Metals Management in New York told the news outlet on Monday. "Some investors are on the sidelines as they want some clarity from the Fed."
At 12:11 p.m. on Monday, gold futures dropped 0.94 percent, a $12.28 loss to $1,299.75 per troy ounce.
Reuters reports the precious metal also endured losses as a result of the British business sector demonstrating improvement, which cut down on gold's allure as an asset haven. Losses for the precious metal amounted to roughly 2 percent last week.
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.
