Gold futures may have found solid support as buyers have stepped-in for two days in a row now. The US Dollar’s decline may be boosting the precious metal’s appeal as an alternative investment, safe-haven.
In the relationship with 10-yr. T-Notes, the dollar slipped slightly with treasury’s and against most other major currencies. Compared with gold, it’s an inverse relationship – as the dollar has lost ground, gold futures climbed the most it has in two months.
Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, shared his insight regarding the current gold futures situation by stating, “As volatility in the stock market picks up and the dollar pulls back from its highs, gold has become more attractive to investors. A continued pull back in the dollar index could lead to additional gains for gold.”
Gold futures trend is still technically down. I view this relief rally as a temporary event and am looking for short signals.
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.