A brighter outlook about the likelihood of U.S. political leaders successfully staving off threats posed by the fiscal cliff helped push up gold futures on Tuesday, according to Bloomberg.
The negotiations between President Barack Obama and Speaker of the House John Boehner as of late have seen markedly more progress as they work toward averting the $600 billion-plus tax increases and spending cuts set to kick in with the new year.
"Calmer heads typically prevail," senior broker Kurt Pfafflin with Daniels Trading said. "Doing something that will ultimately result in the resolution – typically things get pushed to where it's an agreement no one really likes but at least it's something. We could see either side get really intractable and say: 'Look we're not going to do this, we don't agree with this,' and then you have a situation where we could go off the cliff if you will, and if that's the case then we're in the unknown."
At 11:22 a.m. on Tuesday, gold futures fell 0.48 percent, an $8.14 loss to $1,690.18 per troy ounce.
MarketWatch reports Tuesday's losses were due to the yellowish metal losing some of its appeal as a safe-haven investment.
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.