Gold Drops On Profit Taking

Gold fell from a three-week high in New York on speculation physical demand may slow after prices rallied on bets for prolonged U.S. stimulus and a weaker dollar.
Bullion futures reached $1,352.30 an ounce yesterday, the highest since Sept. 30, and climbed as much as 8.1 percent since Oct. 15. The Bloomberg U.S. Dollar Index, a measure versus 10 currencies, was little changed near an eight-month low after data showed yesterday more Americans than forecast filed jobless-benefit claims and manufacturing growth slowed.
Gold is set for the first annual drop in 13 years as some investors lost faith in the metal as a store of value and on speculation the Fed will slow debt purchases as the economy strengthens. The central bank unexpectedly refrained last month from slowing the $85 billion of monthly bond-buying and policy makers will keep the buying level until March, according to economists in an Oct. 17-18 Bloomberg survey.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza