Gold was able to cut its losses early on Wednesday and hit a four-year high after the U.S. dollar retreated due to weak inflation and retail sales data. According to Binary Tribune, this downcast data lessened investor expectations of an earlier-than-expected interest rate increase by the Federal Reserve.
Earlier today, Binary Tribune reported that Comex gold for settlement in December reversed earlier losses and rose by 0.13 percent to $1,235.9 per troy ounce, having just hit a four-week high of $1,239.6. Gold rose for a second day on Tuesday and ended up 0.35 percent higher at $1,234.3. The retreat that the U.S. dollar index showed yesterday may have been a key driver in gold's early Wednesday gain.
Gold's Wednesday high didn't last long, however. Later in the morning, Bloomberg reported that gold had fallen again, leaving its four-year summit as the dollar stabilized again. Gold for December delivery fell 0.5 percent to $1,227.70 an ounce by 7:36 a.m. on the Comex in New York after it reached $1,238.60 yesterday, which marked the highest level since Sept. 17. Gold for immediate delivery dropped 0.4 percent to $1,227.61 in London, according to Bloomberg generic pricing.
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.