Gold News: Dollar Hits Year High But Retreats In Face Of Iran Deal

Gold News

In the latest gold news: As of May 8 at approximately 2:19pm EST, gold was trading at $1317.06 per ounce, moving very minimally since the prior week. At approximately this time last week, gold was trading at $1317.94 per ounce.

gold news

Recently, the dollar has had a prosperous run and hit a 2018 high, pushing the bullion lower. The Federal Reserve meeting which was discussed last week has not had much of an impact as the results of the meeting were much as expected, and Federal Reserve Chair Jerome Powell’s statements remained fairly unchanged since March. According to the Fed, inflation has moved close to its 2% target, a number which stirs up much debate as to its appropriateness. Currently, this is the longest and tightest (in terms of percentages) gold price consolidation since the bottom in December 2015. Over the last three weeks the dollar has gained approximately 4.5%. Jens Pederson, a Danske Bank senior analyst, stated, “A stronger dollar has created headwinds for gold but we don’t see the dollar going much higher on a medium-term basis and in terms of geopolitics there are some factors to keep an eye on”. The dollar has since retreated from its 2018 high and sunk slightly lower.

The dollar’s retreat is in light of the latest news that President Trump might withdraw from the Iran nuclear deal. Moments ago President Trump announced that the US will actually be withdrawing from the deal. This news will likely push gold higher as worries of the geopolitical consequences ripple through the market.’s Fawad Razaqzada stated, “If Trump pulls out, I reckon gold will pop higher, but I doubt it will stay elevated for too long”. Immediately following the announcement, the gold market has shown signs of volatility and the prices have been fluctuating rapidly within a short range. Pederson further commented that he “could see gold buying again” if Iran is hit with sanctions. In the longer term, gold is expected to deliver its strongest annual price performance in five years in 2018, according to GFMS analysts. They believe that the political uncertainty of late will drive investment in bars and bullion-backed investment funds. In the short-run analysts believe that the level of $1300 and $1307 will hold and gold will not drop back down to $1200 levels.

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.

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