US gold futures tumbled $5 per ounce Tuesday amid heavy speculative long liquidation
US gold futures tumbled $5 per ounce Tuesday amid heavy speculative long liquidation sparked by the steep upturn of the U.S. dollar.
The February contract futures were down $5 to settle at $422.10 per ounce on the COMEX.
A drop of gold price came after the U.S. currency pushed higher against the euro to mute demand for dollar-alternatives such as gold.
February futures duly opened on the back foot and nearly $2 lower, and continued to face selling pressure through the opening two hours of the session.
Now experts differ in opinion concerning next behavior of gold prices.
For instance, Leonard Kaplan, president of money management firm Prospector Asset Management, argued that further losses in gold should be expected in the days and weeks ahead as the U.S. dollar continues to nose higher on the prospect of higher U.S. interest rates.
Larry Young, senior trader at Infinity Brokerage in Chicago, had a much more
bullish view and expected a strong rebound in gold prices over the coming year
as geopolitical uncertainty steered investors towards safe havens like gold in
Spot gold during the New York session sank to $421 an ounce and three-day
lows amid good volumes trade. The $420 and $418 levels are deemed major
downside goals over the near term.