Gold futures are sharply lower today reportedly after the New York Federal Reserve’s index of manufacturing conditions showed improvement for prospects in February – but just not at the pace for economic growth expected. The index dipped to a level of “7.8” for this month when in fact analysts were4 expecting 8.5.
Gold futures may be at a vulnerable crossroads amid ongoing expectations for the Federal Reserve private bank to begin a campaign to raise interest-rates possibly in June. Higher interest-rates are considered bearish for gold & precious metals as an investment because it competes with yield-bearing assets when rates are rising.
Barb Levy, chief director for The Fox Group’s futures division in Chicago, shared her fundamental analysis insight regarding the current gold futures by stating, “All eyes for gold investors will be on tomorrow’s release of the minutes of the last Fed meeting.” Levy added, “Maybe it will provide a clearer picture when interest-rates will possibly rise.”
The trend for gold futures is down once again after a brief rise last month. There is no bottom yet in sight for gold futures, however, a base of support comes in at the $1,170.00 level in my study.
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.