Gold futures this year will bounce back from recent plunges in value to push beyond record prices and the milestone value of $2,000 per troy ounce, states an association's survey, cited by The Financial Times.
Administered by the London Bullion Market Association, the survey notes only three of 26 gold-dealing financial institutes and traders do not view the yellowish metal as likely to advance in 2012. The record price of gold futures is $1,923.70 per troy ounce and was set on September 6.
"With the gold space far from crowded, when the tide turns, it would take a relatively small showing of support to cause the price to move quickly," precious metals strategist Edel Tully with UBS told the news source, citing one driver of the precious metal's climb this year will be the recession that is likely to impact Europe.
Gold futures this past December plunged to their lowest price in six months of $1,521.94 per troy ounce.
Agence France-Press reports President Nicolas Sarkozy of France and Prime Minister Mario Monti of Italy, the euro zone's second- and third-largest economic systems, met in Paris on Friday to discuss deficit-reduction strategies.
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.