The U.S. dollar has been strengthening on greater speculation that the Federal Reserve will begin tightening its monetary policy in December after the surprisingly strong October jobs report. Most raw materials are priced in dollars and historically a strong USD has pressured commodities. The Fed is expected to raise interest rates for the first time in nine years later this month.
“Put positions for the $975 strike have increased nearly 10 times since the beginning of last month to Monday. The options expire on Jan. 26, indicating traders expect prices to slip towards those levels by then,” according to Reuters.
SPDR Gold Shares
Tom Lydon’s clients own shares of GLD.