Gold Futures Halt Slide on Dollar’s Drop

Gold futures has halted its slide from yesterday as the drop in the US Dollar promotes demand for the precious metal as an alternative investment.  Gold futures for December delivery are currently trading $1.50 per ounce higher than yesterday’s close.

There is speculation the Federal Reserve will emphasis the need for economic growth to pick-up before they begin to trim their stimulus efforts.  On the eve of a Janet Yellen chairmanship to the nation’s bank, she also concurrs by stating “the labor market must improve before policy makers can consider tapering.”
           
Kevin Riordan, director of research at Capital Trading Group in Chicago, had this to say about the current gold futures situation,Gold (futures) prices are being supported by the recent slump in the US Dollar. Tapering (or the  lack thereof) will continue to be the overriding story for gold (futures) prices as we head into the new year.”

The trend for gold futures is down and we are short this market – both COMEX Gold and the mini-gold futures contracts.  If gold futures can breakthrough their $1,260.50 low one week ago today, then there will be no bottom in sight. 

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