Gold News: Gold Tumbles Further As Year End Nears
Gold News
In the latest gold news: As of December 11 at 7:36am EST, gold was trading at $1250.29 per ounce, dropping slightly from previous weeks’ prices as of late. At approximately this time last week, gold was trading at $1274.17 per ounce.
Following the aftermath of last week, the gold market is still reeling from the impact of the U.S. Senate approval of a tax reform bill. This has massive implications for how the market and its interactions and businesses will change, and gold is no exception. Gold has tumbled even further from the initial impact and has recently hit a four month low in its prices. In terms of gold investment, prospects are not expected to improve given the US Federal Reserve monetary policy meeting next Wednesday which could kick the pressure on the precious metal in to high gear. If the central bank’s policymakers send hawkish signals to the markets and boost the probability of a quickening pace of rate rises then it is likely that gold will sink even further this year. It is likely that the remainder of 2017 only holds a decline or bounded fluctuation for gold in store, since analysts predict gold has already peaked this year and is at risk of remaining beaten down until mid to late 2018. It might be time for investors to take up a stake in gold when it bottoms out, since despite the low outlook for the next few months, gold is expected to rebound in the long term and reach new heights by the end of next year.
If we go further than next year and take a much longer stake in time frame, then we could be looking at a much larger potential upside for the bullion. Investors were likely cheered by recent comments by the chairman of the World Gold Council, Randall Oliphant, who stated, “We haven’t been finding the new gold deposits–there hasn’t been an interest in bringing on as many mines as we had in the past, and a lot of companies have declining production profiles. So, we have supply rolling over as demand continues to grow. It seems to be setting up good fundamentals for the gold market .” He further asserted that gold production this year “may be the most that will ever be produced”. Once gold starts hitting a decline for production, scarcity will drive prices up as people pursue the precious metal. Oliphant maintains an optimistic view of the market and predicts a longer-term price of up to $1900. While it is always good to maintain a sense of caution when given such strong opinions, most analysts tend to agree that gold will see significant upside next year, and it might be good to capitalize on the gold price lows occurring now and within the next few weeks to purchase some of the bullion.
This sentiment remains prevalent and is causing the bullion to remain somewhat steady below this year’s high. In the 7-day gold prediction ending November 19, 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 AI: Returns up to 2.41% in 7 Days.” After a week, I Know First’s average percent change came out to 1.76% with XAG as the top earner, bringing in an impressive 2.41% return to investors.
