Gold News: Declines Turning Around into a New Week
Gold News
In the latest gold news: As of May 8 at 9:04am EST, gold was down significantly trading at $1,230.57 per ounce from last week’s $1,267.19 per ounce, marking a third consecutive week of declines for the bullion. However, the bullion has started to rally in early Monday trading.
Gold was declining due to the expectation of the Fed hiking up interest rates in the coming month and probably one more time after that this year. Because gold does not earn interest, when there are hikes, investors tend to stay away from gold and head towards investments that provide yields. Additionally, after a few weeks of increased geopolitical tensions, the markets seemingly believe that the tension is about to ease. A third catalyst behind the gold and silver prices decreases are the results of the first round of the French election because Emmanuel Macron was widely anticipated to defeat Marine Le Pen in the second round of the elections.
The reason that gold has started to regain steam is due to the outcome of the second round of the French elections. With pro-EU Emmanuel Macron officially voted into office, the euro strengthened against the dollar and the price of gold immediately began to rise despite the fact that it was expected to fall due to a newfound level of certainty.
In the week-long gold prediction ending May 4th, I Know First’s algorithm based on predictive analytics showed an impressive 100% accuracy rate, as seen in “Commodity Outlook Based on Genetic Algorithms: Returns up to 7.56% in 7 Days”. After three days, I Know First’s average percent change came out to 5.56% with CL1 as the top earner bringing in an impressive 7.56% return to short investors.