Gold Futures Plummet as Jobless Claims Uptick and Dollar Rallies

Gold futures are down big today (and this week) with investors reacting to a few events: a bounce in China’s equity markets, an uptick in US jobless claims, and the continuing strength in the US Dollar. Gold futures are down $14.00 today currently trading at $1,073.10 per ounce at the Commodity Exchange in New York.

Gold futures have returned to the mid-level trading of all last month after rallying to $1,113.00 per ounce only last Friday and as high as $1,190.00 in mid-October. Perhaps gold futures are looking to stabilize after China’s devaluation of its yuan-currency last week, after all, they are the world’s largest producer of the precious metal and the world’s second largest consumer.

Investors (of gold) are also aware the Federal Reserve may be in the beginning stage of a rate-hike trend with another meeting forthcoming in two weeks,” said Barb Levy, chief director for The Fox Group’s futures division in Chicago, sharing her fundamental assessment of the gold futures market. Levy added,Gold (futures) compete with higher interest-rate bearing securities, so any further rate hikes could be actually ‘bearish’ for gold (futures).”

Gold futures trend has just turned up (in my study) late last week. This pull-back in gold futures can be viewed as a way for consumers – or investors – to buy on a dip.

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.