Posts Tagged ‘precious metals’

US Data & Need for Fed Clarification Send Gold Futures Soaring

Gold futures have blasted-off today reportedly once mixed domestic data highlighted uncertainty with the Federal Reserves timing of their next rate hike. Gold futures are up $22.40 per ounce currently trading at $1,153.90 at the New York Commodity Exchange.

The US Commerce and Labor Departments both released information such as initial jobless claims, durable goods orders (and “core” durable goods orders), orders & shipments for core capital goods, which came in outside analysts projections, but also revisions from previous reports were eye-openers for the gold trade. Later today, the Federal Reserves Chairwoman will be delivering a speech that investors will be listening to that may provide clarity on last week’s decision to keep interest-rates steady.

The trend for gold has been back and forth with big swings in the past month, and is now at a crossroad to switch back up. Gold futures will require a little more action to the upside to change the direction to up in my work, however.

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Gold Futures Sink Another $21 on Durable Goods Data

Gold futures have sold-off for a third session in a row from its $1,170 highs only on Monday once domestic durable goods orders rose an unexpected amount last month and now boosting sentiment for a forthcoming interest-rate hike. Gold futures are now down $12.40 per ounce and currently trading at $1,126 at New York’s Commodity Exchange.

When durable goods orders were expected to “drop” by 0.4%, the US Department of Commerce reported an actual increase for total durable goods orders by 2% last month. To reinforce the sentiment, June’s durable goods order’s were revised to a “4.1%” gain from the 3.4% which was previously reported.

The technical trend for gold turned up only one week ago today. Gold futures still look strong despite the three-day sell-off so if there are any jewelers or electricians out there looking for a place to buy, this may be it.

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Gold Futures Close Lower on US Data & Greek Woes

Gold futures barely worked its way lower today for a fourth session in a row most likely on two main concerns: lack of progress with the Greek-debt concerns, and strong US consumption data. Gold futures are down a nominal .80 cents per ounce currently trading at $1,172.10 per ounce at New York’s Commodity Exchange.

Earlier this morning, the US Commerce Department communicated that consumer spending spiked last month by 0.9% – the biggest single-month gain in almost six years. Meanwhile in Europe, high level meetings including the European Central Bank, the IMF, and the European Commission failed to reach a deal to avoid Greek financial aid and ultimately bankruptcy.

The technical trend for gold futures is down, but like many markets right now, it has been trading “sideways” for three full months now. When this market breaks out (in either direction), it could be one heck of a trend following.

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Private Sector Data Launches Gold Futures

Gold futures soared today over the $1,200 threshold just after the “soft” non-farm payrolls were released on the outlook of lower employment figures to be released on Friday. Gold futures closed $25 per ounce higher on the day at New York’s Commodity Exchange division of the New York Mercantile Exchange.

The ADP National Employment Report released today showed the private sector adding 189,000 jobs last month which falls short of the 225,000 expectation of other expert economists forecasts. What’s significant about this preliminary forecast is that it marks the lowest increase in seasonally-adjusted private employment since January of last year.

The trend for gold futures is up as of late last month – so the gold rush is on (so to speak). We are currently long gold futures with both a stop and target price in place.

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Gold Futures Reach Five-Month High on Obscure Growth Outlook

Gold futures have reached a five-month high in early morning trading on the outlook of a safe-haven hard-asset amid speculation of sputtering global growth. Gold futures are currently at $1,288 per ounce (up $11) in New York at the Commodity Exchange.

Over the long weekend, in Washington, DC the Int’l Monetary Fund released an aggressive retraction of their global growth forecast of the past three years. They claim a worldwide slowing of growth (except for here stateside) and that it will “more than offset” the expansion boost offered from dwindling crude oil prices. Also recently, the Swiss National Bank shook the markets last week ending a cap to their currency against the Euro which initiated this leg up for gold futures.

Gold futures trend is up with no top yet in sight. I am concerned with the lack of follow-through with gold futures bulls this morning and feel a correction is due…

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Rebounding Economy Crimps Haven Demand for Gold Futures

Gold futures are finding waning demand for the precious metal as an alternative investment since the government released data showing US economic growth rebounding more than forecasted for the last quarter. Gold futures are in its third day lower.

The government released its “gross domestic product” (GDP) report today which conveyed it rising at a 4% annualized rate which compares well with the revised 2.1% “drop” in the first quarter. Other economists had the GDP forecasted to be 3%, so this is a 25% difference.

The GDP figures released early Wednesday morning, showed a higher than expected rise, boosting the dollar and equity markets, and pressuring the gold futures. The market still awaits any announcement from the Fed later Wednesday and the unemployment report on Friday,” stated Barb Levy, chief director for The Fox Group’s futures division in Chicago, sharing her insight regarding the current gold futures situation.

Gold futures trend is technically still UP, albeit barely hanging on and at a crossroads. I am still attempting to look for buying opportunities in gold futures until a more clearer picture develops.

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Equities, Portugal’s Debt Seen Boosting Gold Futures

Gold futures climbed to prices not seen since March as concerns over debt in Portugal and the current slump in equities possibly boosting demand for the precious metal as a safe haven. Gold futures are up over $14.00 per ounce from yesterday as of this writing.

There are major concerns that Europe’s most indebted nations remain financially vulnerable to shocks after Euro-bonds declined when Portugal’s largest bank missed a debt payment recently. Equity-markets have been in the tank since last week at this time and this is also contributing to flight-to-safety in gold futures.

Laura Taylor, a senior commodities broker at RJO Futures in Chicago, had this to say regarding the current gold futures situation,The flight to quality today in the gold (futures) and bonds stems from the concerns in Europe over the Portugal’s possible financial collapse.” Taylor adds,But what is adding fuel to the fire is the world’s concerns that the Federal Reserve’s intention to stop pumping money into the economy will actually take place come October.”

The trend in gold futures is up with higher-highs being made just today. We are long gold futures since yesterday with target prices and protective stops in place.

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Fed Meeting Helps Consolidate Gold Futures

Gold futures are virtually at a standstill ahead of today’s conclusion of a two-day Federal Open Market Committee meeting which is intended more for monetary and interest-rate policy (than gold itself). Gold futures price swings are said to have slumped to their lowest since October 2010.

So far this month, gold futures have traded in a range of $45 per ounce compared with the $74 per ounce range just last month. According to data compelled by industry experts, this precious metal’s 60-day historical volatility has dropped to 11.4 – the lowest since mid-October 2010.

Gold (futures) is trading in a more defensive position as the equity market continues to trade within a tight trading range.  Economic data, deflation and geopolitical risks do not pose immediate threats that would drive gold prices higher in the short-term,” said Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, regarding the current gold futures situation. Craney added,The bulls in the gold market need some surprise from any of these catalysts to favor higher prices.”

The trend for gold futures is technically down with a seasonal tendency to continue lower until the end of the month. I am currently short gold futures coming into today’s two-day meeting conclusion of the Fed, and have a rather tight stop above the market.

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US Jobless Claims Fall With Gold Futures

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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Gold Futures Tank on Stimulus Concerns

Gold futures plummeted today with its biggest drop of the year on the outlook of domestic consumer prices strengthening may give the Federal Reserve the okay to scale back their stimulus efforts even more.  Gold futures are currently down $25 per ounce as of this writing, but were down over $40 per ounce with the session low of $1,284.40 per ounce.
 
The CPI (“consumer price index”) rose two-tenths of 1% on the government report this morning, and that was double what many economists were predicting.  Even US retail sales recently showed a pick-up in activity last month more than economists had forecasted.

Gold (futures) seems to be catching up with a strengthening economy and how the feds are reacting to it,” stated Laura Taylor, a senior commodities broker at RJO Futures in Chicago, regarding the current gold futures situation. 

The trend for gold futures is technically still down, but up until this morning had been at a crossroads and the verge of switching trends.  This gold futures fallout today verifies the downward trend.

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