Gold News: Finding Buried Treasure and Rallying
Gold News
In the latest gold news: As of July 4, 2016, at 3:45 AM EST, the price of gold continued to climb and was selling at $1346.89 per ounce. Starting in anticipation of and continuing following “Brexit,” gold has been rallying. It even topped its two-year high on Friday, June 24 at $1358.54 per ounce. On June 24, Britain announced that Britain voted to leave the EU and there was a bullish effect on gold. The bullion rose 4.8%, the highest rise in one day since January 2009, even though the pound depreciated markedly.
The UK is also engaging in an expedition to see if gold lies deep within the ocean floor. The expedition to explore the possibility of mining said gold is taking place in an underwater ridge in the Atlantic Ocean where hot springs exist due to volcanic activity. Scientists are taking care to make sure that they do not damage the sensitive ecosystem that is sustained. They are doing so by only examining the hydrothermal vents that have been dead for thousands of years. Additionally, researchers are searching for “rare earths,” which are used in many different technologies from cars to cell phones. This seabed mining could bring in 40 billion pounds according to British Prime Minister David Cameron.
The rallying of the bullion is leading to a decrease in cheap gold mines. As the price of gold continues to rise, the premiums on gold mines are increasing with it. Larger miners are concerned with the Chinese. Amidst the prices of gold shooting up, the Chinese are buying up gold mines creating more competition.
Looking forward, the price of gold will likely rise. Based on the economic ramifications of Britain’s exit from the EU, the FED will unlikely raise interests rates this year, and as a result, people are looking to buy more gold. According to a Bloomberg survey, there could be as much as a rise of another 7% in gold prices by year-end.
On June 3, I Know First’s algorithm accurately predicted that gold prices would increase and stocks would have positive returns as seen in “Gold Price Outlook Based on Big Data: Returns 23.13% in 1 Month” I Know First’s average percent change came out to 15.05%.
