Gold futures are finding waning demand for the precious metal as an alternative investment since the government released data showing US economic growth rebounding more than forecasted for the last quarter. Gold futures are in its third day lower.
The government released its “gross domestic product” (GDP) report today which conveyed it rising at a 4% annualized rate which compares well with the revised 2.1% “drop” in the first quarter. Other economists had the GDP forecasted to be 3%, so this is a 25% difference.
“The GDP figures released early Wednesday morning, showed a higher than expected rise, boosting the dollar and equity markets, and pressuring the gold futures. The market still awaits any announcement from the Fed later Wednesday and the unemployment report on Friday,” stated Barb Levy, chief director for The Fox Group’s futures division in Chicago, sharing her insight regarding the current gold futures situation.
Gold futures trend is technically still UP, albeit barely hanging on and at a crossroads. I am still attempting to look for buying opportunities in gold futures until a more clearer picture develops.
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.