Gold futures have virtually paused between its recent downtrend low of $1,130 per ounce, and the recent high near $1,180, once the Department of Labor released its weekly “jobless claims” report revealing an increase of claims more than previously forecasted. Gold futures are currently trading at $1,160 per ounce in New York.
Gold futures have plummeted just over 16% since the beginning of the third-quarter to a four-year low just last week, and have only managed what appears to be a 2.7% “dead-cat” bounce since. The only bullish news on the horizon comes from the World Gold Council that claims they’re “quite optimistic” for gold (futures) to rise on jewelry demand after this low last week.
“Overall the (gold futures) market is bearish and retains potential for declines around 1075-1070. A close over 1179.90 could secure a bull turn and motivate stronger retracements to 1190,” stated Laura Taylor, a senior commodities broker at RJO Futures in Chicago, sharing her technical analysis insight regarding the current gold futures situation.
Gold futures trend is down with no bottom yet in sight. If fact, gold futures now appear to be “coiling” in price which highlights a possible breakout soon – most likely in the direction of the trend.
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