Visitors Now:
Total Visits:
Total Stories:
Profile image
By Streetwise Reports-The Gold Report (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Gold Falls on Rate-Hike Fears

Tuesday, October 4, 2016 13:10
% of readers think this story is Fact. Add your two cents.

(Before It's News)

Gold fell below $1,300 today for the first time since the Brexit vote in June, as the dollar index rose to a two-month high.

Gold fell below $1,300 today for the first time since the Brexit vote in June, as the dollar index rose to a two-month high. At press time, gold was down $42, at $1,270.

The dollar rose amid increasing speculation that the Federal Reserve will raise interest rates by December. Both Federal Reserve Bank of Cleveland President Loretta Mester and Federal Reserve Bank of Richmond President Jeffrey Lacker have come out in favor of higher interest rates. Manufacturing data released Monday was stronger than expected.

Also pushing down gold is the U.S. dollar’s rise against the British pound, which fell to a 31-year low against the dollar after the release of a timeline for Britain’s exit from the European Union. Aiding gold’s woes is a rise in Deutsche Bank shares today, signaling at least a temporary easing of worries over the bank’s liquidity, and lessening gold’s role as a safe haven.

Jason Hamlin of Gold Stock Bull says, “The next key technical support level for gold is $1,255, a level that was both support and resistance in the past. Furthermore, this price support coincides with the 200-day moving average, so it is likely to offer very strong support for the gold price.”

Hamlin sees several trends that should be supportive of precious metals, including an increase in the U.S. debt of $1.4 trillion at the end of the 2016 fiscal year, increasing geopolitical tensions with Russia, and Saudi Arabia’s threat to dump its U.S. debt holdings.

“With a number of new bullish factors for gold emerging in the past week, it is hard to imagine prices dropping much lower. But in leveraged paper markets with plenty of weak-handed short-term traders, anything is possible,” Hamlin added.

Want to read more Gold Report interviews like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
2) The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.