Fed Taper Fears Drive Gold To 5 Month Low

Gold traded near a five-month low, after the biggest one-day drop since October, as investors assessed whether the U.S. economy is strong enough to warrant a reduction in monetary stimulus.
Gold lost 27 percent this year, touching a 34-month low of $1,180.50 in June, on speculation the Federal Reserve will start paring its quantitative easing program that drove a 12th annual advance in 2012. Data showed yesterday that while U.S. manufacturing unexpectedly accelerated in November at the fastest pace in more than two years, retail spending fell on the weekend after Thanksgiving for the first time since 2009.

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