The U.S. Central Bank is likely to maintain the status quo of its monetary policy through later this year, according to James Bullard, president of the Federal Reserve Bank of St. Louis. Expectations about declining inflation have reduced the need to pull back stimulus, he said.
"Inflation expectations have been easing lately a bit," Dan Smith, an analyst at Standard Chartered in London, told the news service. "Gold is looking for another reason to break higher. It lacks a trigger."
At 8:50 a.m. on Thursday, gold futures dropped 0.47 percent, a $7 dip to $1,488.80 per troy ounce.
Since notching the all-time record price of $1,577-plus per troy ounce earlier this month, gold futures have lost more than 5 percent of their value. The slump in performance directly controverts the precious metal's performance last month, when it repeatedly set and broke record-high prices in at least half of April's trading sessions. The driver of those record pushes was fears of inflation.
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.