Gold News: Gold Prices Extend Gains
Gold News
Gold prices reached a new three-month high last week as more underwhelming US economic data has raised hopes that the Federal Reserve will wait longer to increase interest rates. The contract for June delivery, which was the most actively traded, increased $7 to end the day on Thursday at $1,225.20 a troy ounce. That was the highest closing price since February 13th, and I Know First was able to accurately predict that the stock price would increase.
On May 10th, I Know First had a bullish signal for the yellow metal, with signal strengths of 1.64 and 1.17. The price ended up increasing 3.12% during the next week, as the algorithm predicted. The US producer-price index was released last week. It measures the price that businesses receive for their goods and services. This value fell 0.4% in April from March, while analysts had been expecting it to climb 0.1%.
Data like this in recent months has shown that inflation in the US remains stubbornly low. This might cause the Federal Reserve to hold off on raising interest rates from the near-zero levels they are at now, which is good for gold. The precious commodity has an easier time competing with yield-bearing assets when interest rates are low like they are currently. The fact that interest rates could remain low longer than expected is bullish for gold looking ahead.
