Gold falls more than 2%, extends recent loss, as dollar gains

Discussion in 'Trading' started by ASusilovic, Dec 7, 2009.

  1. FRANKFURT (MarketWatch) -- Gold futures fell more than 2% on Monday, extending their sharp losses, as the U.S. dollar rose against its major rivals, reducing the appeal of bullion as a hedge against the currency's depreciation.

    Gold for December delivery dropped $28.80, or 2.5%, to $1,140 an ounce in electronic trading on Globex.

    Earlier, the metal hit an intraday low of $1,138.40 an ounce.

    Gold extended steep losses that started on Friday, when the dollar rallied in reaction to much better-than-expected U.S. jobs data.

    Correlation traders should have some fun... :) :D :p
  2. Another bubble breaks.
  3. AyeYo


    Gee... look at the surprise on my face. :l

    Someone bring back all those "zomg gold is going to moon!!! buy it now buy it now!!! it never goes down!!" threads from a week ago.
  4. Risk is being repriced for higher inflation expectations. This only a surprise to some.

    When the dollar pops like that and the Eurodollars readjusts and last and least Gold drops 5% can be damn sure the market just realized something.
  5. Mining companies are producing record output. Just china is slated to push 310 or more tons of output this year.
  6. Gold just spiked back up a bit on the Banana Ben testimony.
  7. In moderation! :cool:
  8. Gold back up a bit. More and more digging gold out of the earth to melt into ingots.

    As long as the momentum and music is playing Mining companies will keep digging it up and passing it along.

  9. Either that or simply a retracement.

    Some traders consider a pullback in an uptrend to be a buying opportunity. :)

    Although my tight stops got me out of several mining stocks, I will get back in when the current retracement ends if the COT report indicates that smart money is buying gold again.
  10. Syprik


    #10     Dec 7, 2009