Gold futures soared today over the $1,200 threshold just after the “soft” non-farm payrolls were released on the outlook of lower employment figures to be released on Friday. Gold futures closed $25 per ounce higher on the day at New York’s Commodity Exchange division of the New York Mercantile Exchange.
The ADP National Employment Report released today showed the private sector adding 189,000 jobs last month which falls short of the 225,000 expectation of other expert economists forecasts. What’s significant about this preliminary forecast is that it marks the lowest increase in seasonally-adjusted private employment since January of last year.
“With this decline centered in larger companies with a 1,000 or more employees, it speaks volumes for the anticipated economic recovery,” said Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, sharing his fundamental analysis regarding the current gold futures situation. Medina added, “Today’s acceleration of the new (gold futures) uptrend may be confirmed in Friday’s US Department of Labor’s official release. Look out gold in either direction…”
The trend for gold futures is up as of late last month – so the gold rush is on (so to speak). We are currently long gold futures with both a stop and target price in place.
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.