Gold News: Interest Rates Up, Price of Gold Down

Gold News

In the latest gold news: As of December 18, 2016 at 10:41AM EST, gold was trading at $1,134.48 per ounce, down from the $1154.71 trading price on December 12. A little less than 6 weeks ago, gold was selling significantly higher at $1302.80 per ounce, the high point just before the US Presidential Elections.  There has been a declining trend in gold prices since Donald Trump was elected president of the United States.

gold news

It finally happened. After all of the anticipation that has been going on for months, the Fed announced last week that it will indeed be raising interest rates. This is the second time since 2006 that the Fed has raised interest rates. A statement from the Federal Open Market Committee reads “The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate…” Word on the street is that the Fed may raise interest rates up to 3 times in 2017. This last part takes many by surprise due to market uncertainty with Donald Trump taking over the Oval Office in January.

All of this is bad news for gold and will keep gold declining for the foreseeable future. Gold is a safe-haven investment, but it doesn’t give any income yields to investors. As such, the raise in interest rates means that investors will be looking away from gold and towards income-yielding investments.

In a forecast dated November 16th, I Know First’s algorithm showed 100% accuracy with regards to its gold predictions in the month long gold and oil prediction as seen in “Gold Price Outlook Based on Deep Learning: Almost 8% Return in 1 Month.” After 30 days, I Know First’s average percent change came out to an impressive 7.06%.

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