"The perception that a downgrade would even be possible for the U.S. is driving the gold market," Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, told the news service. "The dollar is going to get whacked."
At 1:16 p.m. on Monday, gold futures climbed 0.55 percent, an $8.10 rise to $1,494.10 per troy ounce.
Another analyst said gold's allure will continue attracting investors' interest as a haven, particularly as the likelihood rises about the dollar's decreasing value.
"The odds are increasing that we're going to see a credit downgrade in the next few years," Matthew Zeman, a strategist at Kingsview Financial in Chicago, told the news service. "More and more people are looking to gold as the ultimate currency."
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.