Gold Drops On Expectation Data Will Be Taper Positive

Gold declined in New York, extending the worst monthly performance since June, on speculation a strengthening U.S. economy will warrant less stimulus.
Bullion futures slid 5.5 percent last month as minutes of the Federal Reserve’s latest meeting showed officials said they may reduce their $85 billion in monthly bond purchases “in coming months” as the economy improves.
Gold is set for the first annual drop in 13 years as some investors lost faith in the metal as a store of value. U.S. data released last week showed jobless claims unexpectedly fell and leading economic indicators increased. Economists surveyed by Bloomberg News expect reports this week to show growth in American manufacturing and jobs.

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