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.
“We all know how horrid gold has traded over the past year, but as long as price is holding above the five-day and eight-day EMA, I believe buyers have a chance. For the time being, I’d be using $102.60-$102.40 to measure my risk,” adds TheStreet.
SPDR Gold Shares
Tom Lydon’s clients own shares of GLD.