Tag Archive | "gold futures"

Gold Outlook Update For July and August


gold outlook update

(Photo Credit to: Bloomberg.com)

Since the Federal Open Market Committee minutes were released precious metals like gold and silver have been benefiting greatly from the commotion and rumors. While we have given you a Gold Outlook for 2013, much has happened in recent weeks. Consider this a gold outlook update, providing you with the recent changes and weekly progressions since our last post. We’ll take a look at what affected the precious metals market, current risks and even a little treat! This time around, we were able to get a hold of the ever-busy Michael Killian, co-owner/co-founder of Stock, Rock, and Roll to give us his input on the current gold market. So as you are easing into work this morning, catching this during your lunch break, or surfing the web under company time, take a look at the latest gold outlook update!

 

 

Gold Outlook Update: Current Standings

gold outlook update

(Photo Credit to: BusinessInsider.com)

Since posting our last few gold outlook articles, including Gold Outlook for 2013 and Gold Stocks, Who’s Hurting, Who’s Flourishing, and What’s Next, the precious metal has been riding a three-week high. We’ve recently been witnessing stronger levels and higher rallying gains. In the past week gold prices rallied 4.9% which has been the biggest gainer since October 2011. Even gold futures spiked 2.6% after Federal Reserve Chairman Ben Bernanke stated their highly accommodating monetary policy will be needed for the ‘foreseeable future’ citing low levels of inflation. We’ll look into Bernanke’s other remarks throughout this post, for now let’s see other gold trading updates. It’s good to see the gold outlook on a positive note, although it will most likely not last too much longer.

 

 

How the FOMC Minutes Affected Precious Metals

In the last week the Federal Open Market Committee released the minutes from their most recent meeting. Key points addressed included the asset purchase program and future plans for the Federal Reserve. While many of Bernanke’s comments were broad, they were still enough to affect the precious metals market. While the Federal Reserve leaves their monetary policy unchanged, the minutes and press conference had Bernanke foreshadowing a taper initiation for the asset purchase program by the end of 2013 concluding by mid 2014 if the economy continues to pick up as the Central Bank expects.

The asset purchase program actually caused some conflict within the committee as it was almost an equal split down the middle of those for the initiation and those against it. Half of the committee feels the state is still too weak, and it’s too early to start wrapping this program up. The other half feels its time to start preparing by scaling back purchases to avoid any potential negative consequences of the program, ensuring they do no exceed the anticipated benefits. They’ve seen how there’s been a decline in the unemployment rate since last September and the ongoing increases in private payroll. With the labor market improving, policymakers for the taper are confident with it’s initiation.

gold outlook update bernanke

(Photo Credit to: WashingtonPost.com)

While Bernanke and the Federal Reserve continue to debate the fate of the asset purchase program, members did agree that they will shed some light on their monetary policies in coming months, especially after Bernanke’s collection of broad and vague statements.

Bernanke himself can be seen as somewhat contradictory, as some even refer to his remarks as “dovish.” In the past few weeks as the focus was on the FOMC, Bernanke has flip-flopped back and forth between hinting at the start of a taper in addition to says the economy still had a long way to go and will require much more easing. Though some scratched their heads over these comments, his tone was definitely enough to affect Forex and Precious Metals markets. Thankfully it was in a positive regard, but what is Bernanke’s final consensus? Is he for the taper or not?

 

 

Should I Invest in Gold? Michael Killian’s Opinion

Since our last gold post, I was able to catch up with the knowledgeable co-founder of Stock, Rock, and Roll, Michael Killian. I wanted to pick his brain and see what his thoughts were with the FOMC and Bernanke’s role in the precious metals market and his opinion on investing in gold. After this recent gold outlook update, should you invest or hold off?

gold outlook update

(Photo Credit to: Bloomberg.com)

As we discussed the FOMC’s last meeting, Killian said,”…it seems like the economy has taken a step for the better. As a result, the U.S dollar is expected to increase in value.” He went on to explain how interested rates have increased and in turn yielding higher monetary returns to banks. He projects that in coming months the stock market should be doing better than it has been.

Following the FOMC I asked Killian if he would invest in gold or other precious metals at this time. In response he profoundly said, “There’s a saying, ‘buy the dip.’ The best time to buy is usually when everyone else is selling – especially with a hard asset like gold.” Of course, this statement refers to supply and demand. In the case of precious metals there is always a limited supply of these commodities in addition to a continuous demand.

“I think gold is a great investment at the moment,” Killian continues, “the upside potential surely outweighs the risk at the moment. In the short-term, prices will probably stay in the $1,200-$1,300 range for a while. As a long-term investment, gold is likely to rebound to previous highs.”

If you are looking for a quick-flip situation, this commodity is not for you. For those of you who have the ability to sit on an investment like gold for a while, you will more than likely reap the benefits as gold begins to rebound. As we concluded our conversation, Killian concluded by stating, “Now is a good time to capitalize on the low price of precious metals.”

Gold Outlook Update Wrap-Up

Well, it’s apparent that much has happened since our last gold post. While the FOMC’s committee attempts to find some middle ground in future meetings we can also expect a specific plan as to how they will approach their monetary policies from now on. Bernanke’s comments are still unclear, though we should be able to identify his side in coming weeks. For those of you debating on investing in gold, you heard it from a seasoned stock professional. As Killian said, ‘buy the dip’ and take action while everyone is selling and benefit from the low prices. Just remember you have to be willing to hold onto these investments with a long-term mindset!

What do you think? Will you invest in gold? What are your thoughts about Michael Killian’s remarks? Let us know!


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Posted in Commodities, Stock Market NewsComments Off on Gold Outlook Update For July and August

Gold Futures: The True Story


Gold Futures

Gold Futures are Here

Gold futures are hot at the moment. Like the basic gold market, they seem to represent a wonderful opportunity to let any investor make money quickly. It is wise to remember, though, that futures are always a sword that cuts both ways. If you want to get involved with futures, you have to be willing to admit that the risks are often as great as the rewards.

Gold Futures and You

It might be easier to think of gold futures as a bet against the future. As a buyer, you make a bet that the price of gold will rise in the future, while the seller is working for a downturn in the market. If things go your way, you might make a huge profit. If they do not, you walk away with a loss. It can be both more and less dangerous that trading in gold itself and the profits can be nearly as wonderful as the losses are terrible.

What a good gold futures trader must remember are the margins. You do have to put money down to secure your investment, and you do stand a chance of losing quite a bit if the price of gold goes down. This is in place so you do not try to get out of the deal that you have made, of course, but it often serves to ruin lesser investors.

If you want to trade in gold, futures can be the best way to make real money. It can also be the best way to take a loss. Your goal as an investor should be to find a way to mitigate the latter while embracing the former. Fortunately, the current gold market is still quite strong. If you want to trade in gold futures, it truly does seem to be a good time to do so.

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Why you should Invest in Gold Futures Options


Gold Futures Options Are a Solid Gold Investment

gold futures options

It is no secret that gold futures options are some of the most popular futures options currently on the market. In spite of the slow economy, gold is seeing highs it has not seen for years. In fact, some economic experts believe that the slow economy may even have something to do with gold’s rising value. Gold has long been considered a solid investment in times of economic turmoil. It is considered a way to keep the value of your money when every other investment seems to be losing value. These preconceptions about the stability of gold may deserve some of the credit for gold’s continued rise in value. With no sign that gold is going to drop or slow its rise any time soon, now is the perfect time to consider investing in gold futures options.

What Is the Best Way to Invest in Gold Futures Options?

If you decide to invest in gold futures options, there are a few things you need to do before buying the stocks. The first thing to consider is your investment plan. Even if you plan to invest in gold and gold alone, you should know how much you want to invest, when you want to buy and when you want to sell. If you need help making these decisions, you can talk to a financial adviser, or consider buying automated trading software. This software is a relatively new addition to the world of futures trading and can track both the market and your portfolio, telling you the best times to buy and sell.

Once you have mapped out your investment strategy, it is time to make your investment. If you want, you can talk to an investment broker in person. Today most people find that an online broker is the easiest and often the cheapest way to invest in gold futures options.

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Risks and Reasons to Trade Gold Futures


What to Know to Trade Gold Futures

trade gold futures

Learning to trade gold futures can be difficult. Futures differ from typical trading on the stock market, and require different knowledge to trade them successfully.  Trading gold futures is a great way to capitalize on the value of gold without making a huge investment.

Gold prices

The value of gold has shown impressive growth in the last 10 years. Prices are currently more than $1,900 per ounce. Analysts expect the value to rise to at least $2,000 per ounce before the end of 2011. The market is looking bubblier due to the recent growth, however. The gold market, like any other sector, is a risky place. Although a new milestone is not cause for immediate alarm, the spike in value is making some investors and experts nervous. Gold has risen from $1,400 an ounce at the start of the year. Prices vaulted from $1,800 an ounce to $1,900 in only about 2 weeks.

Incentives to Trade Gold Futures

If gold values are so risky, you may wonder what reasons that there are to trade gold futures. The gold market is still on track to continue rising. One of the benefits of trading futures is that you may buy and sell them on a short-term basis. Investors can sell their futures before the expiration of the contract, and then buy new contracts to profit from falling prices. The higher liquidity of the assets means you have a more reliable real-time price than available with the OTC bullion market. You also need much less money to get involved in trading gold futures.  Futures are bought and sold for a fraction of the metal’s actual value.

Gold has become a precarious investment to some thanks to this recent unprecedented jump in value. Gold prices are inching very close to the predicted mark of $2,000. There is still time for savvy investors to trade gold futures and profit greatly from it.

Posted in FuturesComments Off on Risks and Reasons to Trade Gold Futures


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