Gold Drops After Risk Appetite Returns to Markets

Gold prices have sunk below unchanged and are trading near their daily lows in late-morning action Thursday. The big rebounds in world stock markets the past 24 hours have taken the bullish steam out of the safe-haven gold market.

The key “outside markets” are also bearish for the precious metals on this day: a higher U.S. dollar index and weaker crude oil prices. Still, there is a growing camp of metals market bulls that believes a revived world economy, including interest rates rising to more normal historical levels, will in the coming months lift raw commodity sector prices in general, including the precious metals. December gold was last down $6.00 at $1,267.50.

via Kitco

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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