Gold slides to 2-week low as dollar, stocks rise

Gold market update for Friday May 10th. A stronger dollar and rising stocks combined to send gold futures to a 2-week low, its biggest drop since last month’s plunge. Also, Friday’s jobs report beat forecasts, adding to speculation that the Fed may end its bond-buying program, or QE, before the end of the year. Improving economic indicators have also increased the appeal of stocks, which of course has come at the expense of gold. “The Fed may step up QE or step down QE depending on how the economy performs,” Credit Agricole analyst Robin Bhar said. “So far, the data seems to be improving, which suggests they’re likely to take their foot off the pedal. That would argue for weaker gold.” Read more…