The achievement for the yellowish metal comes as its value has plunged 2.6 percent thus far in 2011. By contrast, 2010 not only saw gold soar 30 percent in value but also achieve its 10th straight year of annual gains. Moreover, gold notched its record price of $1,432.50 per troy ounce on December 7 of last year.
"Gold is ready to resume its uptrend because of the worsening outlook for inflation," said James Turk, the founder of an outfit called GoldMoney.com, which managed $1.4 billion worth of precious metals and currencies for investors. Those figures are current for late January 2011.
Just prior to 4:30 p.m. on Thursday, gold futures were up 0.63 percent, an $8.60 gain to $1,383.70 per troy ounce. Silver futures were up 3.61 percent, a $1.106 rise to $31.735 per troy ounce.
"Silver is playing catch-up to gold and will pull gold higher," Frank McGhee, head dealer at Integrated Brokerage Services in Chicago, told Bloomberg. "The market has turned its attention to geopolitical fear, food inflation and the Fed not changing its stance."
Learn Futures Technical Analysis with The Market's Spine
Give Your Trading the Backbone it Needs to Succeed, The Market’s Spine is a 34-page futures technical analysis guide that details how to read the backbone of recent market activity, explains a handful of indicators that are well known to institutional and fund traders, and more. Expand your futures technical analysis knowledge here.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.