Bloomberg reports the Goldman Sachs Group Inc. said the U.S. Federal Reserve's slimming down of the economy-spurring measure will pull gold prices lower. The Federal Open Market Committee is slated to convene policy meetings next Tuesday and Wednesday, when the investment house believes the third round of quantitative easing stimulus measures will be reduced. Thus far this year, the yellowish metal has fallen roughly 19 percent, and its streak of annual gains – presently standing at 12 – is in peril.
"Gold prices will decline into 2014 on the back of an acceleration in U.S. activity and a less accommodative monetary-policy stance," analysts with the investment house wrote, according to the news source. "The September FOMC meeting, where our economists expect a tapering of QE3, could prove the catalyst to push gold prices lower."
At 9:34 a.m. on Wednesday, gold futures edged down 0.08 percent, a $1.10 loss to $1,362.78 per troy ounce.
MarketWatch reports President Obama's nationally televised speech on Tuesday night regarding the use of force against Syria also pulled down the precious metal.
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.