Gold News: Bullion Finally Breaks Through Ceiling of Resistance

Gold News

In the latest gold news: As of January 02 at approximately 10:18am EST, gold was trading at $1312.46 per ounce, rising up again after last weeks’ strong performance. At approximately this time last week, gold was trading at $1261.87 per ounce.

gold news

Recently, gold has been surprisingly on the upswing despite the slew of factors which looked to shoot the bullion’s price down; an interest rate hike, a passed intensive tax reform bill, and a much stronger dollar all contributed to the decline of gold’s prices over the last few weeks. However, in more recent times, the metal has been doing surprisingly well, breaking through an originally predicted ceiling of resistance at the mid $1260’s level and reaching a much higher price last week. This is in part due to the holiday season and the lower liquidity and movement for the dollar. This week marks and even more interesting occurrence as gold finally breaks through the $1300 barrier. The bullion had come up close to this ceiling previously, but had not managed to break through. Gold is currently on an upward rising trend and seems to still have movement left in it. Jefferey Halley, a senior market analyst at OANDA, recently stated the following, “As global complacency over the trajectory of US rates continue to be astoundingly low, precious metals in general should continue to benefit. Anti-pollution measures in China squeezing the prices of industrial metals heavily will also continue to provide an indirect boost”.

However, as previously mentioned last week, it remains to be seen whether this upward trend will continue for gold as we move forward in to the new year. Most analysts tend to agree that the holiday season has provided a particular boost for the bullion and has contributed to the overall upward movement. The question now is whether this is merely a momentum case which is acting in response to low liquidity and volatility. Several analysts believe that the answer to this lies in the long term. It is well agreed that 2018 will see a growth in the bullion price over the frame of the year. However, this does not necessarily mean that gold will experience continued rapid growth in the next few months. Since gold has broken the previous barrier of $1300, however, it is a good indicator that the precious metal is gathering momentum to keep pushing higher prices. Lukman Otunuga, research analyst at FXTM, has stated, “With the dollar stumbling into the New Year under renewed selling pressure, gold is likely to remain heavily supported, with prices potentially appreciating towards $1320 this week […] from a technical standpoint, the yellow metal is bullish on the daily charts.” Further movement remains to be seen.

This sentiment has been strong and is causing the bullion to rise up and now break the psychological barrier of $1300. 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.

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