Gold Recovers From Nine-Month Low as Dollar’s Rally Fizzles – by Kevin Crowley and Joe Deaux (Bloomberg News – November 25, 2016)

Gold pared a third weekly drop as the dollar halted a rally that sent bullion prices to a nine-month low and pushed silver into a bear market.

Bullion’s first gain in four days cut this week’s loss to 2 percent. Prices have tumbled as strong economic data and the prospect of more spending after Donald Trump’s U.S. election win boosted bets for higher interest rates. Investors are selling out of gold-backed funds at the fastest pace in three years.

The metal rebounded on Friday as the Bloomberg Dollar Spot Index retreated from a recent high. Gold’s decline earlier stalled at $1,171.18 an ounce, which is near a 61.8 percent retracement of the rally from December to July. The Fibonacci figure is used by some traders and analysts to determine support levels.

“There’s a good argument to be made that this is a calm before the storm,” Anthem Blanchard, the chief executive officer of Anthem Vault in Austin, Texas, said in a telephone interview.

“There’s probably going to be a lower-than-expected rate increase, or maybe it will be the same as last year. Those are some real catalysts for gold prices in dollar terms.”

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