Gold Futures Hit Three-Week High on Weak Dollar

Gold futures extended their gains today with not only a weaker dollar, but the outlook that the Federal Reserve will remain cautious in their monetary tightening approach. Gold futures are up $1.50 trading at $1,259.50 per ounce at the Commodity Exchange in New York.

Gold futures for June delivery reached $1,264.60 today – prices not seen since March 22nd – just as the US Dollar tested Monday’s low of 93.74 which is its weakest price since October. The dollar has remained weak since Federal Reserve Chairwoman, Janet Yellen, made comments eluding to expectations of the next interest-rate increase.

The Fed’s are keeping a very ‘open mind’ in the direction of interest-rate increase keeping the gold trade rather on edge,” said Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, sharing his fundamental assessment of the gold futures market. Brady added,A lower-priced dollar is beneficial to gold investors as it keeps the price of bullion lower.”

The trend for gold futures remains up with the market testing its March highs. Gold futures is trading between its $1,290 (March) high, and its $1,210 (late-March) low.

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.