Higher equity prices and an increased interest in crypto currencies, including bitcoin, have likely stolen the shine from gold lately, causing prices to break below the most recent trading range, said Josh Graves, senior commodities strategist at RJO Futures in Chicago.
Between mid-October and early-December, gold prices had stayed between $1,265 and $1,300 an ounce.
“The path of least resistance is down on the FOMC meeting,” Graves said of the metal’s response to outgoing Fed Chair Janet Yellen’s last meeting in charge. “We will likely see continued selling down to a psychological $1,200 area before you see any recovery.”
To read the full article with Josh’s comments, please visit www.reuters.com.