Gold Extends Losses, Sharply Lower, Amid Stronger U.S. Dollar, Fed Speak, Chart-Based Selling
Tuesday October 04, 2016 10:19
(Kitco News) - Gold futures prices have extended early solid losses to trade sharply lower and at a 3.5-month low in late-morning trading Tuesday. Better trader and investor risk appetite in the world marketplace this week has helped to weigh on safe-haven gold. Sell stop orders were triggered in gold futures markets when several technical support levels were breached after the New York day session opened.
The stronger U.S. dollar index on Tuesday has also worked against the precious metals market bulls. The British pound fell to a 31-year low against the U.S. dollar overnight and the Euro currency is also seeing keener selling interest, both of which are helping to boost the greenback.
There were also comments from a Federal Reserve official today that fell into the camp of the monetary policy hawks who want U.S. interest rates to rise sooner rather than later. Fed official Jeff Lacker implied today that he would like to see a U.S. rate hike soon, as well as more hikes next year.
U.S. manufacturing reports released this week were also upbeat, to suggest a tightening U.S. labor market that would warrant an interest rake hike.
December gold was last down $25.00 an ounce at $1,287.00.