Gold News: The Calm Before the Storm For Gold
Gold News
In the latest gold news: As of November 06 at 9:07am EST, gold was trading at $1271.66 per ounce, remaining constant at a relatively bounded fluctuation rate. At approximately this time last week, gold was trading at $1273.18 per ounce.
In recent weeks gold has not seen much movement beyond slight fluctuations in the mid-high $1200’s range. This is contrasted from the previous swings in momentum which took gold from severe lows to breaking psychological barrier highs. Looking back we can attribute much of this movement to the geopolitical tensions which led to gold being used as a financial safeguard. Fortunately, tensions seem to have eased and we are now faced with a much calmer outlook for the gold price movement. This is possible merely the calm before the storm, however. The Federal Reserve is looking to have a third interest rate hike this year, and all indicators are that this will still be happening and is on track for occurring in December. If this happens, we are looking at drastic movement for gold occurring once more. This will happen in response to the dollar movement, since the greenback and the bullion have such a polar and tightly interwoven relationship.
Many analysts believe that this current bounded fluctuation in gold price is only temporary, and that the next few months will see gold possibly have a drop. They believe this because the Fed has declared aggressive approaches to interest rates over the next year and besides the planned one in December they will also have four more in 2018. Combined with what is termed as “a lack of real geopolitical risk”, analysts believe this will elad to lower gold prices over time. Hence, the confusion: as noted last week, there is a set of analysts that also believes that gold will climb back to above $1400 next year. The question then becomes whether gold is currently overvalued or undervalued. Either way, both sides agree that gold will not enjoy its newfound stability for much longer. One way or another, events are such that gold will be affected in the upcoming months. Therefore, investors may want to avoid becoming too reliant on the currently low movement price of around $1270, as this is unlikely to last for much longer.
This sentiment remains prevalent and is causing the bullion to remain somewhat steady below this year’s high. 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.
