Gold futures have retreated back to lows not seen since November reportedly on mixed housing data and ahead of the Federal Reserve’s two-day monetary policy meeting. Gold futures are currently trading at $1,148 per ounce at the COMEX division of New York’s Mercantile Exchange.
The US Department of Commerce reported the number of housing starts issued throughout the country fell dramatically last month, while at the same time housing permits exceeded expectations (thus, the mixed picture). The other side of the bearish gold coin is that traders are looking ahead to tomorrow’s official statement by the Federal Reserve to see if there is any indication by them to begin raising interest-rates as early as June.
Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, sharing his fundamental analysis regarding the current gold futures situation saying, “It’s expected for traders (investors) to be hesitant in establishing long positions ahead of tomorrow’s fed-statement.” Medina adds, “All eyes and ears are on tomorrow’s meeting announcement.”
The trend for gold futures is down with no bottom yet in sight. This has been a difficult market for me these last two weeks when gold futures accelerated with the trend and through what would have been my sell stops – and never looked back.
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.