Gold Slowly Recovers From 34 Month Low Drop

Gold declined for the first time in three sessions as a stronger dollar reduced the appeal of the precious metal as an alternative investment.
The dollar gained as much as 0.5 percent against a basket of six currencies, extending the year’s advance to 4.6 percent. Bullion futures slid 23 percent in the second quarter, the most since at least 1975, as Federal Reserve Chairman Ben S. Bernanke said that the central bank may slow its bond-buying program this year.
“The stronger dollar is one of the reasons” why gold is retreating, Peter Fertig, the owner of Quantitative Commodity Research Ltd. in Hainburg, Germany, said today by telephone. “The overall sentiment remains bearish and the first sign of weakness is used to sell.”
Gold futures for August delivery slid 0.3 percent to $1,252.10 an ounce at 9:14 a.m. on the Comex in New York, after climbing as much as 0.9 percent. The metal gained 3.6 percent in the previous two sessions.

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
Alfonso Esparza

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