Gold futures have spiraled lower since their mid-October $1,190 per ounce highs with investors continuing to cut holdings of the precious metal because of the outlook the Federal Reserve will raise interest rates next month during their next meeting. Gold futures are down $17.50 today currently trading at $1,118.40 per ounce at the New York Commodity Exchange.
Gold futures were in an overall uptrend in the past three months with concerns of the global economic slowdown led by China’s flailing economy and the potential for it to negatively affect US growth. With the hawkish statement by the Federal Reserve Chairwoman last week, however, the entire mood was that of gold market traders pushing back and changing their mindset toward pushing for higher interest rates.
Laura Taylor, a senior market strategist at RJO Futures in Chicago, shared her fundamental view of the gold futures market by stating, “What we’re seeing in the gold (futures) market is proactive traders making the world’s ‘go-to’ hedge against inflation reflect conditions imposed by the feds.” Taylor added, “If the feds are not going to raise the interest rates, then the price of gold should be much lower in price – is the message.”
Gold futures trend is “down” as of yesterday (in my study) with no bottom yet in sight. Unless you are a professional trader, gold futures is a market right now that is best left alone until the dust settles.
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.