[video] Quick Take: Strong Dollar Sinks Gold Prices
NEW YORK (TheStreet) -- WTI crude oil prices slipped to $95 per barrel for the first time since June, while Brent crude oil prices remain stable as production issues in Libya continue to linger.
Gold fell by double digits for the second consecutive session. Jim Wyckoff, senior analyst at Kitco.com, told TheStreet's Joe Deaux most of the move in gold can be traced to the more hawkishly perceived Federal Open Market Committee statement from the Federal Reserve on Wednesday, which also boosted the value of the U.S. dollar.
He added that weakening WTI crude prices are certainly not helping matters for gold bulls.
With this new perception of the Fed's potential tapering efforts in hand, does it mark the end of the short-term gold run?
According to Wyckoff, that's yet to be determined. Although the bullish technicals are starting to fade, the commodity is moving into a neutral territory between bulls and bears.However, he said that bulls would need to show some strength if they want to have a chance at preventing gold prices from slipping lower. Wyckoff concluded that if gold prices break $1,300, it could trigger a lot of stop-loss orders, adding even more pressure to the downside. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts