Gold's weekly gain was erased on Friday as the U.S. dollar posted gains for a second straight day.
Bloomberg reported that gold futures for December delivery declined 0.1 percent to $1,223.50 an ounce by 7:33 a.m. on the Comex in New York. Gold for immediate delivery in London lost 0.1 percent to $1,223.25 an ounce. The precious metal had reached its two week high yesterday, but saw its already small rally evaporate today.
Gold's decline came on the back of a strengthening U.S. job market, a rising dollar and the belief that the Federal Reserve will raise interest rates and end it's stimulus policies. The Binary Tribune reported that the US Labor Department found the number of Americans who filed for initial unemployment benefits last week fell to 287,000 from a revised amount of 288,000 a week earlier. This beat economists' projections that the number of unemployment claims would rise to 294,000. The four-week average of initial jobless claims fell to 287,750, the lowest claims rate in the last eight years.
"The dollar staged a small comeback, which in turn led to profit taking in the metals. The markets do not want to get ahead of themselves and need to consolidate now rather than attempt lift off," said David Govett, head of precious metals at Marex Spectron Group in London in a note to Bloomberg today.
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.