Gold futures extended their losses and the U.S. dollar rebounded against a basket of foreign currencies after Wednesday afternoon’s release of the latest Fed Beige Book.
COMEX gold futures – per the December 2011 contract – settled lower by $5.80, or 0.4%, at $1,647.00 per ounce. However, in electronic trading following the COMEX close the yellow metal dropped to $1,641.00 per ounce.
Gold’s sell-off coincided with a rebound in the U.S. Dollar Index (DXY), which recaptured the large majority of its earlier losses to trade down by just 0.1% at 77.091 this afternoon. The euro currency, which had been higher by as much as 0.8% at 1.3869 against the greenback, turned lower by 0.1% to 1.3741.
Silver futures followed the yellow metal southward, dropping $0.77, or 2.4%, to $31.07 per ounce, amid weakness in precious metals and the broader commodities complex.
While the Fed’s Beige Book largely did not provide any surprising details about the state of the U.S. economy, traders used its release as an excuse to take profits following yesterday’s rally in stocks and commodities. With many dollar-denominated asset classes moving into negative territory, the greenback invariably bounced back from its earlier losses.
Source; http://www.goldalert.com/2011/10/gold-extends-slide-u-s-dollar-rallies-after-beige-book/
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