13 Sep 2013
Gold extends further losses; 9 week lows
FXstreet.com (London) - Gold futures dropped in the largest decline in prices for nine weeks.
Gold fell on the back of a U.S. jobless claims count that last week dropped to the lowest since April 2006. This gave rise to speculators forecasting that the Federal Reserve will indeed look to cut back on the fiscal stimulus in the near future.
Then of course Syria is a risk and prices are subject to tensions there. The yellow metal rose on fears that the US would indeed move in, yet while there are delays and such fears have been dismissed somewhat, and the war premium is coming off. As Equity markets continue to pick up, gold prices historically are likely to continue to fall, and we have seen over 20% declines this year already. Gold spot has printed a low of $1,319.50 so far today, dropping from the $1,330 supporting level, extending losses from the $1,360 level yesterday. A test here and failure would open up $1,300 and break the ascending support line from July below $1,200.
Gold fell on the back of a U.S. jobless claims count that last week dropped to the lowest since April 2006. This gave rise to speculators forecasting that the Federal Reserve will indeed look to cut back on the fiscal stimulus in the near future.
Then of course Syria is a risk and prices are subject to tensions there. The yellow metal rose on fears that the US would indeed move in, yet while there are delays and such fears have been dismissed somewhat, and the war premium is coming off. As Equity markets continue to pick up, gold prices historically are likely to continue to fall, and we have seen over 20% declines this year already. Gold spot has printed a low of $1,319.50 so far today, dropping from the $1,330 supporting level, extending losses from the $1,360 level yesterday. A test here and failure would open up $1,300 and break the ascending support line from July below $1,200.