Gold falls more than 2%, extends recent loss, as dollar gains

A

ASusilovic

FRANKFURT (MarketWatch) -- Gold futures fell more than 2% on Monday, extending their sharp losses, as the U.S. dollar rose against its major rivals, reducing the appeal of bullion as a hedge against the currency's depreciation.

Gold for December delivery dropped $28.80, or 2.5%, to $1,140 an ounce in electronic trading on Globex.

Earlier, the metal hit an intraday low of $1,138.40 an ounce.

Gold extended steep losses that started on Friday, when the dollar rallied in reaction to much better-than-expected U.S. jobs data.

http://www.marketwatch.com/story/gold-extends-losses-as-dollar-gains-vs-rivals-2009-12-07

Correlation traders should have some fun... :) :D :p
 
Gee... look at the surprise on my face. :l


Someone bring back all those "zomg gold is going to moon!!! buy it now buy it now!!! it never goes down!!" threads from a week ago.
 
Risk is being repriced for higher inflation expectations. This only a surprise to some.

When the dollar pops like that and the Eurodollars readjusts and last and least Gold drops 5% ...you can be damn sure the market just realized something.
 
Gold back up a bit. More and more digging gold out of the earth to melt into ingots.

As long as the momentum and music is playing Mining companies will keep digging it up and passing it along.

SilveradoGold1NolanMine.JPG
 
Quote from Rabbitone:

Another bubble breaks.
More...

Either that or simply a retracement.

Some traders consider a pullback in an uptrend to be a buying opportunity. :)

Although my tight stops got me out of several mining stocks, I will get back in when the current retracement ends if the COT report indicates that smart money is buying gold again.
 
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