Gold futures have reached a five-month high in early morning trading on the outlook of a safe-haven hard-asset amid speculation of sputtering global growth. Gold futures are currently at $1,288 per ounce (up $11) in New York at the Commodity Exchange.
Over the long weekend, in Washington, DC the Int’l Monetary Fund released an aggressive retraction of their global growth forecast of the past three years. They claim a worldwide slowing of growth (except for here stateside) and that it will “more than offset” the expansion boost offered from dwindling crude oil prices. Also recently, the Swiss National Bank shook the markets last week ending a cap to their currency against the Euro which initiated this leg up for gold futures.
Kevin Riordan, director of research at Capital Trading Group in Chicago, shared his fundamental analysis insight regarding the current gold futures situation by stating, “Several factors have contributed to this rally in gold we’re seeing.” Riordan added, “More decisions from the European Central Bank are forthcoming and gold, once again, is the current safe-haven for investors.”
Gold futures trend is up with no top yet in sight. I am concerned with the lack of follow-through with gold futures bulls this morning and feel a correction is due…
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