Gold futures has plummeted today further minimizing the precious metal’s appeal as a “safe-haven” for investors. A combination of events is reportedly responsible for the two-week low in gold futures.
First, the Ukraine’s president-elect, whom is said to be pro-Russian, has eased tensions with his victory so it is perceived to be unnecessary for the EU and the US to impose tougher restrictions against Russia. Earlier this year, gold futures gained almost 7% because of the uncertainty creating this demand. Finally, the strength of the US Dollar by the monetary policy maker’s outlook of non-inflation has also helped to dampen any “gold rush.”
Kevin Riordan, director of research at Capital Trading Group in Chicago, had this to say regarding the current gold futures situation,“The current sell off in gold (futures) prices has been fueled not only by easing tensions in the Ukraine, but also in the strengthening of the US Dollar.”
Gold futures trend remains down with no bottom yet in sight. With gold futures making lower lows today, the next support level (in my studies) is right near where my target price is working.
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.