Gold futures traded in a much tighter range than usual

Gold futures have been trading in a much tighter range than usual during recent sessions. This is a turnabout from large volatility over the past several months, said optionsXpress in a research note.

Analyst with optionsXpress said, “The gold volatility indexes GVX and GVZ have moved into the mid-20s, down over 15 points from recent highs. Traders have wrestled between a number of market forces that have pulled the market in different directions. An uncertain economic outlook and the firm dollar have weighed on metals prices.”

“However, the uncertainty facing Europe has kept Gold an attractive investment vehicle for defensive traders. Also, Europe is expected to keep money loose as it grapples with their financial crisis. The wild card that may ultimately trigger a response either way may be equity prices,” optionsXpress added.

“Technically, February gold’s trading range continues to tighten, forming a large wedge. The direction of the market is unknown, but the ridge of the wedge or triangle suggests that the potential move could be explosive,” optionsXpress concluded. (Commodity Online)

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Posted by admin on Dec 10 2011. Filed under Gold predictions. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry