Gold Price Hammered To 5-Mo. Low On Technical Selling, Improved Investor/Trader Optimism

New York (Nov 11)  Gold prices are sharply lower and have careened to a five-month low in late-morning trading Friday. Sell stop orders were triggered in the futures market when prices dropped below key support at the October low, to intensify the price downdraft. Gold prices are down more than $100.00 an ounce from the Wednesday spike high to $1,338.30, basis December Comex futures. A generally upbeat trader and investor psychology late this week (the "Trump rally") has worked against the safe-haven gold market. A better-than-expected University of Michigan consumer sentiment survey report late Friday morning also lent notions to an improving U.S. economy. This week's markets' price action suggests the Federal Reserve could go ahead and raise U.S. interest rates at its December meeting. The past several years have seen the raw commodity sector, including the precious metals, benefit from a very easy U.S. monetary policy. The fact that scenario appears to be coming to an end has likely prompted some of the selling pressure in gold and silver markets. December gold was last down $31.80 an ounce at $1,234.30.

Spot silver falls nearly 4% to $17.91, while spot platinum declines $21 to $952. 

Source: KitcoNews