Gold futures reversed course after two big “up-days” earlier this week. It’s the biggest drop in gold prices in a week as waning jobless claims hint at a strengthening economy and a set-back for gold (futures) demand as a safe-haven for assets.
Gold bullion “hard-assets” through derivatives have reached their lowest point this week since 2009 with no help of the Federal Reserve cutting stimulus recently causing investors to lose faith in the intangible value of the precious metal. Gold futures plummeted 28% last year amid the backdrop of both a stronger economy and stock market.
“With the U.S. economy growing at an anemic pace and the Federal Reserve pulling back on stimulus, gold has lost some of its shine in the market place. Asset flows in the short-term appear to be going toward treasuries as investors wait for more details on the health of both the U.S. economy and global economy,” said Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, regarding the current gold futures situation.
Gold futures trend is down, albeit more “sideways” for the past couple of months. I am trying to get short gold futures at this time with the trend and seasonal tendency.
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