Gold Remains on The Defensive Amid Speculations of a December Rate Hike
Gold prices extended losses to a second session on Tuesday, weighed down by a stronger dollar that has been fueled by positive economic data and expectations of a rate hike later this month.
Gold futures for February delivery edged 0.3% lower to $1,168.67 an ounce as the dollar gained ground versus its leading rivals while global stocks were in a positive territory.
The dollar index rose 0.4% after the Commerce Department provided one more signals that the U.S. economy has been ready to stand a policy tightening next week. Factory orders were reported to jump for the fourth-straight month in October at the rate of 2.7% – the largest since January 2015.
Strength in the greenback tends to drag gold lower as the precious metal, which is priced in the dollar, will become less attractive for holder of other currencies when the dollar rises.
Sell Stop at 1168.00, Take profit at 1156.00, Stop loss at 1174.00