Gold futures have seen their first meaningful rise in price since the last week of March. The outlook is for gold futures to possibly rise after this seven-week low with demand from China for bullion and jewelry.
In China, a prominent banking firm claims their gauge for measuring gold demand increased last month. In Iraq, their central bank is actively trading gold with public sales, and reportedly importing gold bars for resale to goldsmiths.
“Physical demand from China increased enough to support the rise. Although, the recovering stock market and strong U.S. economic data may prove an issue for continued higher sessions in the gold, as it may no longer be needed as a safe haven long term investors,” stated Barb Levy, chief director for The Fox Group’s futures division in Chicago, regarding the current gold futures situation.
This last sell-off in gold futures have turned the official trend (the way I trade this market, anyway) to the downside. Before I do anything with the short-side of gold futures, I would prefer to see some type of temporary rally first.
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.