FXstreet.com (Barcelona) - Gold futures remain weak to the downside, as a stronger US dollar as well as fears of monetary tightening in China have the yellow metal trading at its lowest since November 3rd. Today, the front-month contract has dropped another $10.00 to hit bottom at $1330.10 a troy ounce, yet remains slightly consolidated above that price at time of writing as it looks for firm support.
With an all-around risk averse environment enveloping the market this week, metal traders are taking advantage of profit-taking opportunities following goldīs historic high recorded last week above $1420.00. Uncertainty regarding Irelandīs fiscal position and the possibilities of contagion to other periphery euro-zone nations has the US dollar recovering from recent lows against the common currency, subsequently weighing heavily on the yellow metal. Whatīs more, speculation of a Chinese interest rate hike plays on overall investor sentiment as the government attempts to curb excessive inflationary pressures.
Looking ahead, the market will have a keen eye out for a range of fundamental data due to be released today from the US as well as euro-zone nations. In particular, the UK will report employment data in the coming hour, while the BoE releases the minutes to the latest monetary policy meeting. Furthermore, the US will announce the October CPI, as well as a slew of key monthly housing data.
