Indications about the growing strength of the U.S. economy prompted gold futures to lose value for a fourth consecutive trading session on Tuesday, according to Bloomberg.
U.S. Labor Department data released late last week indicated the nation's jobs market is growing stronger, prompting speculation that the U.S. Federal Reserve is preparing to taper economy-spurring monetary stimulus measures. Barring an upward surge during the next 45-plus days, the yellowish metal is poised to close its annual gains streak at 12 years.
"The market seems concerned that the tapering of quantitative easing may start sooner than later and that seems to be weighing on sentiment," states an excerpt of a Tuesday report authored by analyst William Adams with Fastmarkets.com in London, according to Bloomberg. "With effervescent equity markets, a strong dollar and generally good economic data, it seems as though precious metals are out of favor."
At 9:42 a.m. on Tuesday, gold futures edged down 0.14 percent, a $1.77 loss to $1,281.04 per troy ounce.
Reuters reports demand for the yellowish metal in India, a top consumer of bullion, has been slow while the rupee loses value.
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.