27 December, 2017
The gold price jumped to a 3-week high in early trading today, taking its gains to over $40 in less than 2 weeks and with the market expected to remain quiet until after the new year, gold rise should remain intact.
So the question is what is in store for gold as the New year kicks off and what factors are likely to support or sink the precious metal?
The first thing that needs to be taken into consideration is the amount of rate hikes to be delivered by the US Federal Reserve with most analysts predicting that the Fed will move 3 times as the year unfolds.
In their last meeting, Fed president Janet Yellen noted that any future rate hikes would be data dependent which basically means, poor data, no rate hikes.
Last Friday we saw core personal consumption index figures and durable good figures from the US which both hit the market below expectations and if this trend continues as the New Year kicks off, rate hikes will be definitely put on the back burner for the time being.
The second thing which comes to mind is the standoff between North Kora and the US over the Former's nuclear weapons program which was exasperated recently by China's decision to halt exports of oil to North Korea which will further cripple the nations already devastated economy.
How the North's Kim Jong Un will react to this situation remains unclear but one thing is for sure is that is he is not going to back down from his nuclear weapons program and the unpredictability of US Donald Trump's reaction may see gold supported by investors looking for a safe haven.
Lastly we have the uncertainty surrounding Brexit and although negotiations for the UK to leave the European union have reached the second stage, there are so many things that could derail the process which threatens to bring instability to the European continent and once again boost the appeal of gold.
So as the situation stand now, gold may be a good bet as we enter the New Year until many of the unknowns become clear.
The oil price has pulled back today after hitting a 3 year high in yesterday’s trading session but the drop is seen as temporary as the US gears...
The gold price has run into some stiff resistance today at around the $1,350 mark as it did in the middle of February and has pulled sharply lower bringing...
The British pound has continued on its winning ways in today’s trading session, breaking through the $1.42 level against its US counterpart after last...
The British pound is trading higher for a 4th straight day against the greenback after another round of disappointing data from the US cast doubt...
Gold has pushed higher in today’s trading session after the release of key data from the US and a shock move by US President Donald Trump to dismiss...
The gold price has had a rough time over the last 2 weeks tumbling around $40 dollars but it seems as if the precious metal has found a new friend...
The British pound has fallen heavily over the last 3 trading sessions against its US counterpart as investors pile into the greenback in...
The British pound may soon hit $1.40 as expectations grow that a 2nd referendum will be held on whether Britain will remain in the European Union with the chances...
The US dollar has remained under pressure in the last 3 trading sessions which is strange inlight of Donald Trumps tax plan which is certain...
|8||Fort Financial Services||67%|