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Gold Set to Snap 11-Session Win Streak amid Stronger US Dollar

Summary:
Gold futures are on track to snap their 11-session win streak as the US dollar strengthens to start the trading week. After the yellow metal surged above its highest level in more than three months, gold prices tumbled as it starts to examine inflationary measures in the coming days. February gold futures dipped .70, or 0.28%, to ,318.60 per ounce at 16:59 GMT on Monday. Gold recorded a 1% weekly gain last week, climbing to its best level since the start of September. The yellow metal has posted 11 consecutive session gains, which is the longest winning streak for a futures contract since 1984. Silver, the sister commodity to gold, is also in the red to kick off the trading week. March silver futures slipped %excerpt%.17, or 0.98%, to .11 an ounce. The white metal also reported a weekly

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Gold futures are on track to snap their 11-session win streak as the US dollar strengthens to start the trading week. After the yellow metal surged above its highest level in more than three months, gold prices tumbled as it starts to examine inflationary measures in the coming days.

February gold futures dipped $3.70, or 0.28%, to $1,318.60 per ounce at 16:59 GMT on Monday. Gold recorded a 1% weekly gain last week, climbing to its best level since the start of September. The yellow metal has posted 11 consecutive session gains, which is the longest winning streak for a futures contract since 1984.

Silver, the sister commodity to gold, is also in the red to kick off the trading week. March silver futures slipped $0.17, or 0.98%, to $17.11 an ounce. The white metal also reported a weekly gain of 0.8% last week.

Precious metals are sliding as the US dollar strengthens with the greenback rising 0.34%. The greenback is looking to rebound after posting a 0.1% weekly loss. A stronger US dollar is bad for commodities like gold and silver because it makes it more expensive for foreign investors to purchase.

Later this week, investors will comb through the latest US producer price index (PPI) and the consumer price index (CPI), which suggests that gold will focus a lot more on inflationary figures.

Traders may be long gold as money managers and hedge funds have doubled their net long positions to more than 148,000 contracts, according to the Commodity Futures Trading Commission (CFTC).

On Friday, gold suffered mild weakness following the December jobs report that found the US economy added 148,000 jobs with an unemployment rate of 4.1%. Because of minor wage growth, analysts argue that it would diminish the Federal Reserve’s projections of three increases to interest rates this year.

If you have any questions and comments on the commodities today, use the form below to reply.


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Andrew Moran
I am a full-time professional writer. Prior to my self-employment, I worked as a reporter for Digital Journal covering the politics beat and The Toronto Times reporting on the city’s entertainment scene. I currently write mostly about business, marketing and finance

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