Gold News: Strong Economic Data Takes a Toll on Gold
In the latest gold news: As of March 13 at 7:12am EST, gold slid to trading at $1208.07. At approximately this time last Monday, the bullion was trading at $1231.43 per ounce. This figure shows a 1.90 drop over the course of the week, following a 2.02% drop from the week before.
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 reason for the recent declines following a 2017 gold rally is the rate hikes that the Fed promised back in its December meeting. Yellen announced that there would be incremental increases due to a strengthening economy and there would be 2-3 in 2017. The Fed is set to have its March meeting this Tuesday and Wednesday and there is an extremely high expectation that the first of these rate increases will be announced. Last weeks economic data strengthened the Fed’s case that the economy is strong enough to handle a rate increase, impacting the price of gold negatively.
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.