Gold News: Rising Global Tensions Push Bullion Prices Higher
Gold News
In the latest gold news: As of April 17 at approximately 11:00am EST, gold was trading at $1343.36 per ounce, up very slightly since prior article. At approximately this time last week, gold was trading at $1333.09 per ounce.
Geopolitical tensions were high last week following the military strikes on facilities associated with Syria’s chemical weapons program in response to received news of an alleged gas attack by government forces on the town of Douma. In response, gold prices spiked as a potential safe haven investment. However, the prices dipped after the series of attacks, waiting for further political movement. Many analysts believe that this further movement will consist of a response on Russia’s part, and the counter-reaction from Russia could possibly push gold prices higher if it indicates that global tension and danger levels are rising. Naeem Aslam, chief market analyst at Think Markets, believes that the price of gold could rally to $1400 if fears of war and further crisis loom larger in the horizon. However, other analysts believe that gold currently has a cap on its possible price spike due to the overall market betting on the conflict in Syria not expanding into further problems.
On the whole, gold has tested the key price support level of $1350 for the 13th time in 5 years, pushing upwards but failing to settle at above the price point. Jonathan Butler at Japanese conglomerate Mitsubishi stated, “We certainly have not heard the last about US-China trade wars […] but for now the markets could remain focused on the threats of actual wars”. There is possibly a case here for a higher spike in the gold prices in the next few weeks, and although analysts are keeping a keen eye on US economic data, the core of the market is focused on the possible global movements–whether this is the US-China trade war which seems to be fading from focus or the counter-response on Russia’s part. Importantly, this is the last week for Federal Reserve officials to make comments on monetary policy before the May 2 FOMC policy decision. The market does not expect that interest rates will be increased again in May, but there is potential to shape the debate heading into the meeting. Many analysts expect that further economic developments are likely to put limited downward pressure on gold.
This sentiment has caused the bullion to remain fairly volatile for the year. 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.
