Gold News: Gold Prices Two Week Low After Dollar Spike

Gold News

In the latest gold news: As of September 18 at 11:17am EST, gold was trading at $1308.88 per ounce, easing off what had been a year high price for gold earlier in the week. At approximately this time last week, gold was trading at $1333.66 per ounce.


In light of the recent easing up in political tensions, gold prices have turned to other factors to be dependent on. Although there is still a climate of unease, there have been no recent political escalations, hence, gold looks to now trade mostly on momentum and the dollar. Prices have hit a new 2.5 week low, breaking past the support level of $1320. This decrease comes ahead of an upcoming Federal Reserve meeting. Although there is no Federal rate increase predicted for the month of September, investors are looking for signals of when the Fed will begin to shrink its balance sheet. Many traders believe that the U.S. economy will not accelerate at this moment, which will keep interest rates manageable and maintain the support for gold. Investors maintain caution, however, in the face of the Federal Reserve’s meeting on monetary policy coming this week.

On the other hand, many traders are currently using the dollar to the yen as an indicator for gold, it is the pivot currency for signals on gold’s direction. The dollar has continued to gain against the yen and remains strong, leading investors to leave the safe haven of gold in exchange for the more volatile dollar. Furthermore, the overall stock market has been performing strongly recently, in general leading people away from gold, thus contributing to the price decreases. Analysts, however, believe gold is stable for now, although it may drop below the $1300 mark in the short term.

This sentiment remains prevalent and is causing the bullion to drop slightly. In the 90-day gold prediction ending September 16, I Know First’s algorithm based on a stock prediction algorithm showed an impressive 100% accuracy rate, as seen in “Gold Price Predictions Based on Deep Learning: Returns up to 5.24% in 3 Months.” After a month, I Know First’s average percent change came out to 5.22% with XAU as the top earner, bringing in an impressive 5.24% return to investors.


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