"CNBC" said : Gold is suffering its longest losing streak since last May—but some smell a buying opportunity
McDonald doesn't believe the Federal Reserve will go through with the three interest rates hikes that are expected this year. "Gold has come under pressure in the run-up to the next Fed rate hike. "I think gold is in a secular bear market, and it's a sell-the-rally trap," he added. That means that bullion is in the midst of its longest losing streak in nearly a year. "I think the Fed is on a path to hike rates three times this year.
referring to
But on Friday, gold fell even as the dollar DXY, -0.64% fell, breaking their typically inverse relationship. The metal's loss stretched to a ninth session, the longest streak of declines since July 2015, FactSet data show. "Even if interest rates rise, gold can rally with it as inflation returns back into focus," Peter Spina, president and chief executive officer of GoldSeek.com, told MarketWatch. Among the exchange-traded funds, the SPDR Gold Trust GLD, +0.22% was almost flat, though trading 2.5% lower for the week. Data Friday showed that the U.S. added 235,000 new jobs in February, cementing expectations that the Fed will raise interest rates next week.
![Gold poised for biggest weekly drop since Nov]()
Spot gold was down 2.8 per cent for the week at $1,203 a troy ounce and set to notch its second consecutive weekly drop. At its December meeting, the Fed had signalled three rate rises this year. The NYSE Arca gold miners index has declined 4.1 per cent over the week and is down for the fourth consecutive week. Gold, which offers no yield, had been benefitting from the rising uncertainty around the outcomes of upcoming European elections. Sentiment on gold miners, that had their best year in more than a decade in 2016, has also soured.
read more visit us gold
collected by :Jack Luxor
referring to
Gold suffers longest stretch of declines since July 2015
But on Friday, gold fell even as the dollar DXY, -0.64% fell, breaking their typically inverse relationship. The metal's loss stretched to a ninth session, the longest streak of declines since July 2015, FactSet data show. "Even if interest rates rise, gold can rally with it as inflation returns back into focus," Peter Spina, president and chief executive officer of GoldSeek.com, told MarketWatch. Among the exchange-traded funds, the SPDR Gold Trust GLD, +0.22% was almost flat, though trading 2.5% lower for the week. Data Friday showed that the U.S. added 235,000 new jobs in February, cementing expectations that the Fed will raise interest rates next week.
Spot gold was down 2.8 per cent for the week at $1,203 a troy ounce and set to notch its second consecutive weekly drop. At its December meeting, the Fed had signalled three rate rises this year. The NYSE Arca gold miners index has declined 4.1 per cent over the week and is down for the fourth consecutive week. Gold, which offers no yield, had been benefitting from the rising uncertainty around the outcomes of upcoming European elections. Sentiment on gold miners, that had their best year in more than a decade in 2016, has also soured.
read more visit us gold
collected by :Jack Luxor
Comments
Post a Comment