Gold News: A Less Hawkish Fed Means Good News for Gold
In the latest gold news: As of March 20 at 5:50am EST, gold was up to trading at $1232.41 per ounce. At approximately this time last Monday, the bullion was trading lower at $1208.07 per ounce. Monday morning’s price shows the first week of prince increase following three successive weeks of declines for the bullion.
At this past week’s FOMC meeting, the much awaited quarter of a percent interest rate hike was announced because of the improving economy. However, the Fed took a less hawkish stance than expected and sent the dollar down to its six-week low and gold shooting up. Because investors are expecting a less hawkish Fed going forward and now know to expect two more interest rate hikes this year and three more next year, they can predict with more confidence what Fed policy will mean for gold going forward.
Gold prices in Asia were affected as well. The rising price of the bullion in India can be attributed to the significantly weaker dollar. Investors abroad are staying away from the bullion and waiting for the price to fall.
In the 3-day long gold prediction ending March 19th, I Know First’s algorithm showed an impressive 100% accuracy rate, as seen in “Gold Outlook Based on Data Mining: Almost 1% Return in 3 Days.” After 3 days, I Know First’s average percent change came out to 0.64% with both GLD and XAU as the top earners each bringing in an impressive 0.64% return to investors.