The watchful eyes of investors, analysts and traders followed policy makers on Monday for indications of whether they will move forward with economy-spurring monetary easing programs as gold futures rose, according to MarketWatch.
Bullion pushed higher than $1,620 per troy ounce on Monday for the first time since August 10 as central banks continued pondering strategies of boosting the national economies they respectively support.
"There's a feeling that governments around the world at some stage are going to do something about further monetary easing," founder and senior resource analyst Gavin Wendt with Mine Life Pty in Sydney told Bloomberg regarding the yellowish metal.
At 1:49 p.m. on Monday, gold futures climbed 0.23 percent, a $3.80 lift to $1,623.20 per troy ounce.
Monetary easing policies, particularly the ones that see central banks purchase debt, typically benefit the precious metal since the market is flooded with the U.S. dollar and the monetary unit's value is watered down.
In response, bullion climbs since the two typically perform the inverse of one another. Speculation and chatter about monetary easing also pushes up gold futures.
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.