Dollar Advances on Tax Reform and Rate Hike Expectations, Gold Extends Losses to Two-week Lows
Gold futures prices extended their downbeat moves on Monday after having suffered the biggest weekly loss in a month last week. The precious metal continued to be under pressure from a strengthening dollar while stocks market on a rally.
Gold for November delivery shed 0.38 percent to trade at $1,273.70 an ounce – the weakest level in more than two weeks. The precious metal closed at $1,280.50 last Friday, marking a roughly 1.9% weekly drop which was the worst weekly performance since September 22nd.
The yellow metal lost ground as the U.S. dollar was boosted by optimisms over the progress on tax reform following Republican-controlled Senate’s passage of a budget blueprint. Furthermore, expectations that the Federal Reserve will raise rate in its December meeting and tighten the economy steadily next year make non-yielding metals like gold less attractive.
Sell Stop at 1273.50, Take profit at 1268.00, Stop loss at 1276.00