Gold on a Downtrend After Stocks Rise

Gold traded near the lowest in more than a week in New York as investors weighed reduced demand for a haven against signs of more physical purchases.

Gold fell to a one-week low of $1,226.30 an ounce on Oct. 23 and declined 0.6 percent last week as global equities and the dollar strengthened. In top buyer China, volumes for the benchmark spot contract on the Shanghai Gold Exchange were near a two-week high, the latest data show.

Equities reached the highest in two weeks today as none of Europe’s largest banks failed European Central Bank-led stress tests. The Federal Reserve is expected to end monthly asset purchases at its Oct. 28-29 meeting. Traders have pushed back estimates for when the Fed will raise U.S. interest rates as policy makers expressed concern that the economy may be at risk from a global slowdown.

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