The price of gold futures will remain elevated for some time, according to an Australian producer of the yellowish metal.
Bloomberg reports the top official with St. Barbara told an Australian Broadcasting program on Saturday that the price will remain high though in the short term there will be significant volatility.
"I think the price, and the consensus seems to be that the price, is going to remain strong for some time," chief executive officer Tim Lehany told the news outfit. "There will be a lot of short-term volatility."
As the precious metal embarks on the week priced slightly less than $200 off the record high of $1,923.70 per troy ounce, the precious metal finds itself about 40 days from achieving an 11th consecutive year of annual gains.
The Perth-based firm has two primary sites from where its gold derives – Leonora and Southern Cross, both of which are in the nation's west. The company also is exploring mining opportunities in Southeast Asia.
Business Insider reports gold futures were impacted by news from a credit rating agency stating U.S. banks might be at risk to losses from euro zone nations' banks suffering from the sovereign debt crisis.
Risk Disclosure
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.
