Despite Friday's gains, bullion is still down for the week after the world's reserve currency benefited from what U.S. Federal Reserve Chairman Ben Bernanke did not say. When testifying before the Joint Economic Committee on Capitol Hill on Thursday, Bernanke did not commit to any economy-spurring intervention measures.
"The political and economic worry in Europe isn't going to subside," market analyst Jimmy Tintle with GreenKey Alternative Asset Services told The Wall Street Journal. "And I don't think there are any inflationary concerns to drive gold up."
At 3:35 p.m. on Friday, gold futures increased 0.35 percent, a $5.50 advance to $1,593.50 per troy ounce.
Gold bulls held out hope that the Fed chief would more strongly signal the institute he leads was set to boost the economy, according to Reuters. That intervention would water down the value of the world's reserve currency, which proves to be beneficial to the price of bullion.
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.