Though forecasters indicated the price of bullion is set to decline on Wednesday, the yellowish metal is pushing toward advances of 12 percent this month. Thus far in 2011, gold futures have gained 29 percent, en route to 11 consecutive years of annual gains.
"It's really just been a consolidation after the price ran up to $1,900 so quickly," director Gavin Wendt of Mine Life in Sydney told Bloomberg. "When you get those sorts of price rises, it means that the metal or any commodity is ripe for a period of some sort of consolidation, profit-taking first then some consolidation. The overwhelming sentiment with respect to gold is still positive."
At 7:15 a.m. on Wednesday, gold futures increased 0.22 percent, a $4 lift to $1,833.80 per troy ounce.
August gains of 12-plus percent are approaching the 12.8 percent gains that gold accomplished in November 2009, according to Reuters. Since the U.S. Federal Reserve publicized plans to spur the economy with additional liquidity in August 2010, gold futures have nearly doubled in value.
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.