Gold News Today: Gold Prices Expected to Drop Lower


Gold fell to its lowest level since June 18th last Thursday on the NYMEX. Many analysts expect gold prices to drop further by the end of 2014 even though gold is currently up by more than 8% for the year. According to Dominic Schnider, Head Commodities & APAC Forex at UBS Wealth Management, “There are clear reasons why gold shouldn’t be trading higher.”

Gold prices have hit a 5-week low as gold demand from emerging countries decreases, and especially in China:  the China Gold Association reported on Thursday that the gold demand was down 19% and that demand for gold bars fell 62% since January. Ric Spooner, chief market analyst at CMC Markets considers “It’s most likely we will see lower prices from here.”
Unexpected good results in both China and the United States have also lead to less safe haven buying. Analysts are less focused on gold and looking for new opportunities. For instance the current lower volatility on equity markets has made them really attractive to investors.
As for now, current geopolitical threats, especially in Ukraine and Russia, haven’t had a significant impact on gold prices, but they may at some point conduct to a  rise in gold prices. Andrew Su, CEO at Compass Global Markets, underlines that “We’re going to get a delayed reaction to all these geopolitical events that are happening around the world.”

I Know First’s predictive algorithm is one of the most reliable sources on future gold and commodities prices. Click here to see today’s forecast and some more gold news today.



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