Gold futures pushed well higher than $1,600 per troy ounce on Thursday and notched its top gains in about three weeks of trading in the aftermath of the president of the European Central Bank making strong comments endorsing the common currency of the European Union, according to published reports.
Reuters reports the euro advanced more than 1 percent against the U.S. dollar in the aftermath of Mario Draghi saying the institution he leads is set to exert top efforts for the sake of the 17-nation monetary unit.
"You've got a rise in the euro, which means a weaker dollar, and a risk-on environment, so everything that looks like a risky asset goes up," analyst Nic Brown with Natixis told Reuters. "Gold has been trading just like a commodity (lately) and is behaving like one today."
At 10:36 a.m. on Thursday, gold futures climbed 0.4 percent, a $6.50 lift to $1,619.20 per troy ounce.
Bloomberg reports policy makers with the U.S. Federal Reserve are preparing to convene to discuss interest rates, which will be announced on August 1.
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.
