Gold News: Gold Shows Slight Rebound But May Not Last

Gold News

In the latest gold news: As of February 12 at approximately 2:16pm EST, gold was trading at $1323.57 per ounce, dipping slightly after reduced prices last week. At approximately this time last week, gold was trading at $1334.40 per ounce.

gold news

Gold has recently been experiencing plenty of turmoil in its price fluctuations, especially given the results of the last two weeks where gold experienced a massive dip in its price as a result of much stronger than anticipated US payrolls data and the recovery of the dollar. However, this week gold opened a little stronger, experiencing a bounce back from the drop off last week. Gold futures took their cue from a weakening U.S. dollar and managed to regain position in about half of what was lost last week. This was accompanied by the global market also rebounding from the greatest weekly loss in two years. Chintan Karnani explained this as follows, “traders booked profits in gold long positions to meet margin money calls on equity investments. Gold fell as a result […] Stability on global stock markets will be positive for gold […] Investors will hedge in gold to counter stock market volatility”. Hence, currently gold is experiencing a slight rebound at opening this week.

That being said, even now opening at above $1320 compared to below $1315 at the end of last week, gold may not be quite out of hot water. The weaker US dollar effect causing this current boost may not last given the infrastructure spending plan to be unveiled by President Donald Trump. If the market becomes convinced enough that Trump’s infrastructure spending plan will deliver a strong boost to the US economy and spurn growth, then inflation will be pushed upwards and the market will likely adjust accordingly, taking into account that there will likely be a steeper Federal Reserve rate hike cycle. As a result, the greenback will also be revitalized and pushed to experience growth. Thus, as is a common reaction, gold will fall in position as the appeal of anti-fiat assets is reduced. It remains to be seen whether gold will continue to experience a boost but many analysts are skeptical of further upward gold movement in the immediate term.

This sentiment has caused the bullion to remain fluctuating around its lows, 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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