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 CONDITION.