Gold futures on Friday broke through record highs they had set within hours prior, Bloomberg reports.
Analysts attribute the precious metal's strong performance to weaknesses with the U.S. dollar, the U.S. Federal Reserve, and action by the European Central Bank. Gold futures have set record highs each of the past four days, most recently setting $1,476.20 per troy ounce as the top price.
"The Federal Reserve isn't anywhere near an inflation fight as the ECB," Frank Lesh, a trader at FuturePath Trading in Chicago, told the news service. "Gold‘s move is about the weakness in the dollar. Inflation is the buzzword, and it’s the impetus behind the trade."
Shortly after 2:30 p.m. on Friday, gold futures climbed 1.08 percent, a $15.80 increase to $1,475.10 per troy ounce. Silver futures also are benefiting from the economic developments. At 2:30 p.m., silver futures were up 3.02 percent, a $1.193 climb to $40.745 per troy ounce.
"With the monetary base skyrocketing, and with the U.S. dollar falling, gold has to move higher," Dennis Gartman, an economist and the editor of the Gartman Letter of Southeast Virginia, said.
Risk Disclosure
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.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
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 third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.