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 CONDITION.