Gold Closes at Nine-Month Low; Shorter QE Might Be in Play (GLD) (GDX)
Tweet
Share
E-mail
SPDR Gold Shares (NYSE: GLD) and Market Vectors Gold Miners ETF (NYSE: GDX) are seeing red on the session as gold is hitting near-annual lows.
Gold for June delivery slipped 1.4 percent to settle at $1,553.50 per ounce on the Comex today, a nine-month low for the precious metal.
Recent economic data may point to a shorter term of quantitative easing by the Fed given recent gains in the job market as well as housing prices, among other factors.
The move also comes ahead of Friday's nonfarm payroll report, which should see additions of 192,000 jobs. ADP reported the addition of 158,000 jobs for March, below the 200,000 expected. Generally, there is little correlation between nonfarm and ADP data.
With a shorter-duration QE process, the U.S. dollar may regain some of the strength it has lost over the last 12 to 18 months, making gold contracts a little more expensive to outside investors. Fed chairman Ben Bernanke has even hinted that the central bank has done just about all it can do in terms of altering the trajectory of U.S. recovery and that it was time for lawmakers to take firmer action.
Gold for June delivery slipped 1.4 percent to settle at $1,553.50 per ounce on the Comex today, a nine-month low for the precious metal.
Recent economic data may point to a shorter term of quantitative easing by the Fed given recent gains in the job market as well as housing prices, among other factors.
The move also comes ahead of Friday's nonfarm payroll report, which should see additions of 192,000 jobs. ADP reported the addition of 158,000 jobs for March, below the 200,000 expected. Generally, there is little correlation between nonfarm and ADP data.
With a shorter-duration QE process, the U.S. dollar may regain some of the strength it has lost over the last 12 to 18 months, making gold contracts a little more expensive to outside investors. Fed chairman Ben Bernanke has even hinted that the central bank has done just about all it can do in terms of altering the trajectory of U.S. recovery and that it was time for lawmakers to take firmer action.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Fed’s Daly sees bond market as policy signal
- Union to hold solidarity rally outside Villa Marconi to protest job cuts, employer intimidation
- Buyout firm Vista explores $3B sale of private markets data provider Allvue - Reuters
Create E-mail Alert Related Categories
Commodities, ETFs, Forex, Trader TalkRelated Entities
Ben S. Bernanke, LayoffsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
