Gold News: Gold Price Rises On Weak Dollar

Gold News

In the latest gold news: As of January 08 at approximately 9:05am EST, gold was trading at $1320.51 per ounce, rising up again after last weeks’ strong performance. At approximately this time last week, gold was trading at $1312.46 per ounce.

gold news

Gold has been steadily increasing at an approximately even rate over the last month or so from around $1240 on the 16th of December to around $1320 where it is now. The bullion has been enjoying a strong performance compared to previously, showing more growth than in the bulk of 2017, where the precious metal was caught by the ceiling of resistance price of $1300. Having now broken that ceiling, investors now turn to question what price gold will rise up to. According to Stephen Innes, APAC head of trading at Oanda, “January is usually a good month for gold prices and should remain so on the anticipation of physical demand ahead of the Chinese New Year”. Many analysts seem conflicted, one camp claiming gold can shoot for a few hundred more over the course of this year, while another camp claims that gold will cap out at around the $1300-$1400 range.

It is not an easy matter to tell whether gold will go up or drop back down from here, but many investors do agree that gold can be counted upon to remain volatile, experiencing much of the momentum trading it showed in 2017, reacting strongly to pertinent political and financial events. For example, Stephen Innes further added, “While there could be some downside pressure from a possible US dollar correction, gold will likely remain firm until a March Fed hike possibility comes on the radar”. This interest rate hike will likely power up the dollar once more. However, currently, gold has risen on a weak dollar, which follows a fairly uninspiring jobs report for the United States. The US non-farm payrolls number was 148,000, which was much lower than the expected 190,000. Following this disappointment the dollar weakened and gold has taken advantage of that.

This sentiment has been strong and is causing the bullion to rise up and stay steady, at least for now. In the 14-day gold prediction ending January 02, I Know First’s algorithm based on a stock prediction algorithm showed an impressive 100% accuracy rate, as seen in “Gold Forecast Based on Algorithmic Trading: Returns up to 4.53% in 14 Days.” After a fortnight, I Know First’s average percent change came out to 4.53% with GLD as the top earner, bringing in an impressive 4.53% return to investors.

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