Gold futures extended their losses today from this month’s earlier highs at $1,375 reportedly due to continued progress in a strengthening US Dollar. Gold futures are down $17.50 today currently trading at $1, 314.80 per ounce at the New York Commodity Exchange.
The 1% fall in gold prices today occurs ahead of Thursday afternoon’s big announcement by the European Central Bank’s Governing Council regarding a possible interest-rate hike, as well as the US Dollar sticking near four-month highs. This is the central bank’s first decision on the future of European interest-rates since the Brexit vote last month.
Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, shared his fundamental view of the gold futures market by stating, “The gold (futures) market continues to compete with high-yield bearing assets in an environment of rising rates.” Plotkin adds, “Bullish investors most likely will be satisfied to see a gradual tightening of monetary policy.”
Gold futures trend remains “up” despite today’s big down day. A couple of more days like this for gold futures and we might have to reevaluate gold’s overall direction.
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.
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