Gold futures sank well below the threshold price of $1,300 per troy ounce on Friday as a focus trained on whether lawmakers in the U.S. will be able to agree on a deal to increase the debt ceiling, according to Bloomberg.
The yellowish metal was diving toward a weekly loss of roughly 1.5 percent. Thus far this year, bullion is down about 23 percent and the annual-gains streak is in peril at 12 with two-plus months remaining in the calendar year. The debt ceiling debacle comes as the U.S. finishes its second week of enduring a partial government shutdown.
"Gold fell on optimism over a short-term U.S. debt ceiling extension," states a note authored by analyst James Steel with HSBC Securities Inc., according to Bloomberg. "The path of least resistance appears to be lower for gold."
At 10:09 a.m. on Friday, gold futures fell 1.56 percent, a $20.07 loss to $1,267.53 per troy ounce.
Reuters reports the Friday performance of the U.S. dollar impacted the precious metal as the greenback grew stronger. The dollar and the yellowish metal typically perform the inverse of one another.
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.