Gold News: Positive Market Outlook Causes Gold Prices To Drop

Gold News

In the latest gold news: As of Friday, September 30th, 2016, Gold futures had dropped down to $1,317 an ounce, a loss of 0.7% or $8.90. Although Gold is up about 0.4% for the month of September, as a result of Friday’s loss, Gold has lost about 0.3% for the third quarter.

Although Gold has been gaining momentum over the first half of 2016, along with positive revisions from large financial institutions, it experienced a major loss on friday prompting it to have negative returns for the quarter.


The main reason for the loss in gold was a huge boost in the stock market, as Deutsche Bank AG shares had recovered from record lows by over 14% on September 30th. The firm has lost over half its value over the past year, as its profits had declined tremendously and it was slapped with a $14.2 billion dollar fine a month ago. On friday, speculation had emerged that the bank was nearing a settlement for approximately $5 billion dollars, a large sum but more in line of what Deutsche can actually afford. The market, as represented by the S&P 500 Index, has an inverse correlation with gold, therefore gold is usually seen has a great hedge and safe haven against the overall market.

Furthermore, after Monday’s U.S. Presidential debate had shown Hillary Clinton as the victor, markets became less volatile as most financial institutions around the world favor a Clinton presidency, and her performance had helped her gain a few percentage points in polling. However, the race is still close, which can cause volatility in the market as the election comes to a close in november.

Although gold has lost momentum, on September 28th, 2016, I Know First had published a 3-months forecast, showing the algorithm had been able to achieve returns as high as 13.21% in gold-based investments. I Know First had successfully been able to provide its subscribers with the tools to achieve higher than average returns during those 3-months.

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