Gold futures plummeted today with its biggest drop of the year on the outlook of domestic consumer prices strengthening may give the Federal Reserve the okay to scale back their stimulus efforts even more. Gold futures are currently down $25 per ounce as of this writing, but were down over $40 per ounce with the session low of $1,284.40 per ounce.
The CPI (“consumer price index”) rose two-tenths of 1% on the government report this morning, and that was double what many economists were predicting. Even US retail sales recently showed a pick-up in activity last month more than economists had forecasted.
“Gold (futures) seems to be catching up with a strengthening economy and how the feds are reacting to it,” stated Laura Taylor, a senior commodities broker at RJO Futures in Chicago, regarding the current gold futures situation.
The trend for gold futures is technically still down, but up until this morning had been at a crossroads and the verge of switching trends. This gold futures fallout today verifies the downward trend.
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.