Gold futures are heading toward record highs on Thursday, pushed by speculation about the central bank of the U.S. considering additional measures to spur an economic recovery that is slowing down, Bloomberg reports.
Following the turmoil prompted by the debt ceiling increase debacle in Washington, Swiss and Japanese government officials took measures to reduce the strength of the franc and yen, respectively. The U.S.' AAA credit rating is subject to a review.
Donald Kohn, formerly a vice chairman of the U.S. Federal Reserve, told the International Business Times that additional rounds of monetary easing ought to be under consideration to spur the lagging economy.
"I would certainly want to weigh lots of arguments pro and con on any of those options," he told the publication, pointing to the options that the Fed may employ.
At 6:27 a.m. on Thursday, gold futures rose 0.10 percent, a $1.60 rise to $1,667.90 per troy ounce.
As the second round of quantitative easing wrapped up in June, Fed Chair Ben Bernanke confirmed a third round would not immediately ensue. Minutes from a high-level Fed meeting indicate the topic was hotly debated.
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.