By the end of the year, gold futures will notch prices of $1,560 per troy ounce, a Commerzbank analysis indicates.
A technical analysis showed that, within three months, the yellowish metal will surpass $1,500 per troy ounce, Bloomberg reports. Axel Rudolph, an analyst at the bank, performed a point and figure-type analysis and penned an April 8 report.
"Other point and figure targets are at $1,515 and $1,530, so the $1,515 zone seems important, together with the psychological $1,500 level," Rudolph stated by e-mail on Monday.
Gold futures' all-time high price is $1,478.18 per troy ounce. The commodity notched that price on Monday, which marked the metal's fifth straight day of setting record prices.
Investors and analysts who conduct technical analyses closely observe charts that show patterns and prices that are germane to trading, with the drive of predicting changes. The method applies to a security, a commodity a currency or an index.
A point and figure analysis monitors trends and movements of prices but does not consider the time or volume.
Prior to 3:30 p.m. on Tuesday, gold futures slipped 1.09 percent, a $16 drop to $1,452.10 per troy ounce.
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.