Gold News: Global Peace Reassurance Lowers Bullion Prices
Gold News
In the latest gold news: As of April 30 at approximately 1:51pm EST, gold was trading at $1317.94 per ounce, dropping even further than the prior decrease. At approximately this time last week, gold was trading at $1323.59 per ounce.
Gold prices have dropped moderately and have opened on Monday to a five week low, building to an overall movement of a decline of 1% over the month as a whole. This is following closely the news that the South Korean and North Korean presidents met and have agreed to formally end the Korean war and denuclearize their states. Following this monumental moment, the market has relaxed as the risk of further escalation or war has diminished greatly. Upbeat trader and investor risk attitudes in the world have greatly softened the need for safe-haven investments such as gold or silver. Furthermore, in recent news, the United States and China are also holding high-level trade talks this week, which could avoid the massive worries that the two economic titans were about to enter a trade war. Thus, many of the worries in previous weeks about these two core geopolitical tensions have been allayed and investors are thus moving into much bolder investments such as the dollar, now that the risk of extreme fluctuation is held at bay.
Naeem Aslam, chief market analyst at Think Markets, stated, “The dollar index has been pushed higher due to [Fed] policy and the Fed’s needs to address the higher yield situation […] we think market participants are getting ahead of themselves and there is a strong need for reality check”. Aslam thinks that perhaps this check will occur during the meetings this week. The central bank is scheduled for a two-day meeting on Tuesday and they are expected to fix interest rates and signal no change to a tighter arc of two more rate hikes in 2018. Certain analysts have expressed worry that the current schedule is not enough to handle market inflation. Furthermore, Friday also signals the U.S. employment report from the Labor Department, which is perhaps arguably the most important monthly U.S. data point. Naeem Aslam further stated that “Easing geopolitical concerns and the strengthening dollar index are the factors which are creating the sell-off […] We are looking at two important support levels–$1307 followed by $1300 […] a break of those levels would bring more selling pressure”.
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.
