Gold News: Rate Hike Expectations Down, Gold Up

Gold News

In the latest gold news: As of May 22 at 8:46am EST, gold continued to rally and was trading at $1258.77, making a second consecutive week of gains after close to a month of losses.

Gold News

The price of gold was driven up this week on uncertainty about future US policy. This uncertainty caused investor expectations for a June interest rate hike to go down especially on word of St. Louis Fed President James Bullard saying that a June interest rate hike might be too soon because the economy is showing some cracks. The questions of President Trump’s alleged passing of sensitive information to Russia and asking then-FBI chief James Comey to drop an investigation against Michael Flynn are factors that are causing investors to be concerned about whether or not Trump will be able to enact his proposed economic plans.

The London Metal exchange wants to change the way they trade gold in an attempt to become more competitive with other metal exchanges. The LME wants to trade the bullion through its clearing house (as opposed to typical OTC trades) in order to reduce regulatory costs and create greater transparency in gold trading.

In the week-long gold prediction ending May 11th, I Know First’s algorithm based on predictive analytics showed an impressive 100% accuracy rate, as seen in “Gold, Silver, and Oil Outlook Based on Algorithmic Trading: Returns up to 1.25% in 7 Days”. After seven days, I Know First’s average percent change came out to 0.67% with both XAU and GLD as the top earners, each bringing in an impressive 1.25% return to short investors.

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