Gold futures fell today to lows not seen since early last month on the outlook of positive data making the case for an interest-rate hike this year. Gold futures are down $8.60 currently at $1,185.80 per ounce (but traded to $1,180 earlier in the trading session) at the New York Commodity Exchange.
The US Commerce Department reported the trade deficit narrowed close to 20% in April exceeding analysts expectations, while in the same month US exports ticked up a full 1% and imports declined 3.3%. This information came before the payroll processing firm “ADP” stated May non-farm payrolls rose a hair above expectations to 201,000 with the economy creating 165,000 jobs.
Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, shared his view regarding the fundamental assessment of the gold futures market by stating, “With this most current information, the case is indeed made for interest-rates to be increased by the monetary policy makers (the Federal Reserve board).” Brady adds, “Fridays official employment data could be what the gold traders are waiting for to get this market kick-started.”
The trend for gold futures has been absolutely sideways for 2.5 months while technically “up” in my work. A couple more down days from here could change the trend from up to down, however – today’s/tomorrow’s lows must hold.
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.
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