Gold Futures Spike to One-Year Highs on Global Uncertainty

The gold rush is on as gold futures spiked to a high of $1,263.90 in early morning trade with fears of global financial instability due to a tumbling stock market, a lower US Dollar, and little yield in US Treasury Bonds. Gold futures remain up $50 per ounce at this time currently trading at $1,244.60 at the New York Commodity Exchange. The spike in the precious metal began in the early morning hours with talk of European bank’s shares plummeting to multi-year lows and the concerns of how banks are to profit in a low-growth and low interest-rate outlook. The chairwoman from the Federal Reserve added to the gold rush euphoria when she made comments supporting a slower pace of future rate increases. Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, shared his fundamental view of the gold futures market by stating, “The gold (futures) market may be foretelling of an economy to come. Last year gold dropped based on a decent performance, but with the events of other markets so far this year – not so much.” Medina added, “Gold (futures) will naturally rally when there are such worries about our domestic economy and how that will ripple across foreign economies.” The trend for gold futures is up with no top in sight. Gold futures has turned into a professional’s market with very wide swings happening, so future buyers should be looking for dips. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU...

Gold Futures Close Lower on US Data & Greek Woes

Gold futures barely worked its way lower today for a fourth session in a row most likely on two main concerns: lack of progress with the Greek-debt concerns, and strong US consumption data. Gold futures are down a nominal .80 cents per ounce currently trading at $1,172.10 per ounce at New York’s Commodity Exchange. Earlier this morning, the US Commerce Department communicated that consumer spending spiked last month by 0.9% – the biggest single-month gain in almost six years. Meanwhile in Europe, high level meetings including the European Central Bank, the IMF, and the European Commission failed to reach a deal to avoid Greek financial aid and ultimately bankruptcy. Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, shares his view regarding the fundamental assessment of the gold futures markets by stating, “The overall gold (futures) market seems to be discounting bearish data while the Greek situation is still being worked out.” Craney added, “The gold trade appears to be awaiting a final solution with the Greek debt.” The technical trend for gold futures is down, but like many markets right now, it has been trading “sideways” for three full months now. When this market breaks out (in either direction), it could be one heck of a trend following. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Upbeat Employment & Trade Data Not Enough for Gold Futures

Gold futures fell today to lows not seen since early last month on the outlook of positive data making the case for an interest-rate hike this year. Gold futures are down $8.60 currently at $1,185.80 per ounce (but traded to $1,180 earlier in the trading session) at the New York Commodity Exchange. The US Commerce Department reported the trade deficit narrowed close to 20% in April exceeding analysts expectations, while in the same month US exports ticked up a full 1% and imports declined 3.3%. This information came before the payroll processing firm “ADP” stated May non-farm payrolls rose a hair above expectations to 201,000 with the economy creating 165,000 jobs. Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, shared his view regarding the fundamental assessment of the gold futures market by stating, “With this most current information, the case is indeed made for interest-rates to be increased by the monetary policy makers (the Federal Reserve board).” Brady adds, “Fridays official employment data could be what the gold traders are waiting for to get this market kick-started.” The trend for gold futures has been absolutely sideways for 2.5 months while technically “up” in my work. A couple more down days from here could change the trend from up to down, however – today’s/tomorrow’s lows must hold. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Strong Jobless Claims, Interest-Rates Weigh Heavy on Gold Futures

Gold futures retreated from the $1,200 per ounce high from Tuesday after a reportedly stronger than forecasted US jobless claims data was posted. Gold futures are currently down $8.00 at nearly $1,183 per ounce at the New York Commodity Exchange. The surprise with the Department of Labor statistics report this morning was with a number of other statistics in the report nearing a 15-year low, including the four-week average for initial claims reportedly dropping by 4,250. Interest-rates, on the other hand, have been weighing on gold prices with rates creeping higher in the last week. “(Gold) traders are most likely ‘squaring-up’ positions ahead of tomorrow’s big monthly employment report,” said Barb Levy, chief director for The Fox Group’s futures division in Chicago, regarding the fundamental assessment of the gold futures market. Levy added, “Gold futures have been lacking direction for more than a month now, perhaps awaiting how employment figures and interest-rates will unfold.” The technical trend for gold remains “up” in my study but have been at a cross-roads twice in the last two weeks. Gold futures – at the moment – appear range-bound within a high of $1,217 on the high side, and $1,170 on the lower support level. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Equities, Portugal’s Debt Seen Boosting Gold Futures

Gold futures climbed to prices not seen since March as concerns over debt in Portugal and the current slump in equities possibly boosting demand for the precious metal as a safe haven. Gold futures are up over $14.00 per ounce from yesterday as of this writing. There are major concerns that Europe’s most indebted nations remain financially vulnerable to shocks after Euro-bonds declined when Portugal’s largest bank missed a debt payment recently. Equity-markets have been in the tank since last week at this time and this is also contributing to flight-to-safety in gold futures. Laura Taylor, a senior commodities broker at RJO Futures in Chicago, had this to say regarding the current gold futures situation, “The flight to quality today in the gold (futures) and bonds stems from the concerns in Europe over the Portugal’s possible financial collapse.” Taylor adds, “But what is adding fuel to the fire is the world’s concerns that the Federal Reserve’s intention to stop pumping money into the economy will actually take place come October.” The trend in gold futures is up with higher-highs being made just today. We are long gold futures since yesterday with target prices and protective stops in place. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Rebounding Economy Crimps Haven Demand for Gold Futures

Gold futures are finding waning demand for the precious metal as an alternative investment since the government released data showing US economic growth rebounding more than forecasted for the last quarter. Gold futures are in its third day lower. The government released its “gross domestic product” (GDP) report today which conveyed it rising at a 4% annualized rate which compares well with the revised 2.1% “drop” in the first quarter. Other economists had the GDP forecasted to be 3%, so this is a 25% difference. “The GDP figures released early Wednesday morning, showed a higher than expected rise, boosting the dollar and equity markets, and pressuring the gold futures. The market still awaits any announcement from the Fed later Wednesday and the unemployment report on Friday,” stated Barb Levy, chief director for The Fox Group’s futures division in Chicago, sharing her insight regarding the current gold futures situation. Gold futures trend is technically still UP, albeit barely hanging on and at a crossroads. I am still attempting to look for buying opportunities in gold futures until a more clearer picture develops. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...