Confidence about the continued reduction of monetary stimulus in the U.S. and simmering tensions in Ukraine prompted gold futures to climb on Friday as the precious metal was driving toward marking weekly gains, according to Bloomberg.
After having touched its top price in more than two weeks during the Thursday trade session, bullion edged higher in value as the trade week came to a close. Silver futures tracked the performance of gold futures.
"The gold price is continuing to find support from the unexpectedly dovish Fed minutes from mid-week because the US dollar has been tending towards weakness ever since," states a Friday report authored by analysts with Commerzbank AG, according to Bloomberg. "Because physical demand is also generating little impetus at present, the latest price rise is likely to have been driven predominantly by speculation."
At 9:50 a.m. on Friday, gold futures were even at $1.318.97 per troy ounce. At 9:49 a.m., silver futures edged down 0.11 percent, a 2-cent drop to $20.03 per troy ounce.
Reuters reports gold futures' increase on Thursday was linked with the release of the March minutes from the meeting of the policy making arm of the U.S. Federal Reserve.
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.