Gold News: Sharp Decline due to Expected Interest Rate Hikes
In the latest gold news: As of March 6 at 2:46am EST, gold was trading at $1231.43 per ounce. This figure shows a 2.02% drop from approximately this time last week when gold was up trading at $1256.76 per ounce, due to uncertainty surrounding many of Trump’s economic policies.
Treasury Secretary Steven Mnuchin announced on Thursday that President Trump’s tax plan is unlikely to have a significant impact this year. This sent gold up because in the long-term there is still so much uncertainty about what will happen with regards to implementation of new economic policy by the new Presidential Administration.
The price was largely impacted by Janet Yellen’s announcement on Friday that the Fed will likely be following through on the much anticipated March interest rate hikes. This would be bad news for gold as when interest rates go up, investors go to investments that show yields based on interest rates. The interest rate hikes could be announced as soon at the March 14-15 FOMC meeting and are expected to take hold very shortly thereafter, a pace faster than the Fed’s norm.
In the two week long gold prediction ending February 28th, I Know First’s algorithm showed an impressive 100% accuracy rate, as seen in “Gold Price Prediction Based on Big Data: Over 2% in 14 Days.” After 14 days, I Know First’s average percent change came out to 2.33% with XAG as the top earner bringing in an impressive 2.84% return to investors.