Gold higher on the day in NY but prices remain in the gold bear domain

Gold prices ended higher on Friday but suffered a monthly decline—their sixth such loss in a row—as the benchmark U.S. dollar index continued to strengthen.

The yellow metal had markedly dropped a day earlier as the dollar index deepened its advance, seen after theFederal Reserve this week lifted federal-funds rates for the third time this year and signalled it was prepared to increase again in December. The ICE U.S. dollar index DXY, +0.15%  was up 0.2% Friday and headed for 0.5% third-quarter gain.

“Gold has been trading in a rather good range after dropping to fresh one-month lows on the stronger [U.S.] dollar narrative,” said Stephen Innes, head of trading at Oanda Asia 

“But frankly, the market is so oversold that we should expect consolidation to set in before the next leg lower,” he said. “We’re in the domain of the ‘gold bears’ who have August $1,160 lows in their crosshairs,” Innes concluded

MarketWatch

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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