Extension of losses
Gold futures for the most active December delivery contract marginally gained 0.25% on Monday, November 16, 2015, due to rising geopolitical tensions after the terrorist attacks in Paris on November 13.
Gold saw a fall of 1.4% on November 17, 2015. It had touched a high of $1,097 on November 16 and closed at $1,068.60 per ounce on November 17. The above graph shows its three-day pivot chart.
No safe-haven support
Gold has broken the key support level that it found around $1,080 per ounce. It has also broken its July low of $1,073 and has further retreated, touching its lowest mark in six years. Gold futures reached a low of $1,064.40 per ounce on Tuesday. It seems likely that the commodity has lost its safe-haven appeal.
The S&P GSCI (Goldman Sachs Commodity Index), which includes almost 24 commodities such as gold, silver, wheat, cotton, and copper, shows a fallen ranking for gold, which is currently ranked sixth among the 24 commodities. Almost a month earlier, it held the third position.
The mining companies that witnessed the highest falls on November 17 include Barrick Gold (ABX), Pan American Silver (PAAS), and Yamana Gold (AUY). These three companies make up 12.4% of the VanEck Vectors Gold Miners ETF (GDX).