Gold News: A Continued Path of Decline
Gold News
In the latest gold news: As of October 16, 2016 at 9:01AM EST, the price of gold continued its pattern of decline and dropped down to $1250.56 per ounce. Last Monday, gold was trading for 1261.01 an ounce.
The downward trend in the price of gold can be attributed to a few main factors. The first is the strong expectation that the Fed will raise interest rates in December, which in turn will decrease the value of safe haven investments such as gold. The strengthening dollar has also been negatively impacting the price of gold, as the dollar hit its 2 month high in recent weeks. The looming US Presidential elections is another factor to be taken into account. With less than a month to go, tensions are running high. If Trump becomes the next president, gold prices will likely rise because of the uncertainty of what will happen to the US markets and gold being a safe-haven investment. While the polls are close, Hillary has now won both presidential debates, perhaps assuring some investors that Trump will not win and they may not need their safe haven investment.
Last week, Goldman Sachs told investors that should the price of gold drop below $1250 an ounce to seize the opportunity and buy gold. Goldman sees this as a “strategic buying opportunity.” Be on the lookout as the price of gold is nearing the $1250 price.
HSBC analysts are recommending the safe-haven investment in gold as a result of a downward shift in globalization. Analysts from Bank of America Merrill Lynch are concerned that “events show nations are becoming less willing to cooperate, more willing to contest.” However, the US Treasury is defending globalization because it increases trade.
On October 4th, I Know First’s algorithm accurately predicted that gold and silver would show negative growth in the 7-day gold prediction as seen in “Gold Price Forecast Based on Algo Trading: Over 5% in 7 Days” I Know First’s average percent change came out to an impressive 5.27%.
