RECENT Commodity ETFs RESEARCH
At its meeting on January 31–February 1, 2017, the Fed maintained the current interest rate, and gold hit an 11-week high.
Gold hit its highest price level in about one week on Tuesday, January 31, touching the $1,203 per ounce.
Gold depends on an important factor that could have a strong influence on it and play a major role in the determination of its price. That factor is inflation.
Gold prices dropped on Friday, January 21, 2017, as Donald Trump worked to calm the markets and reiterated his plans to boost the US economy.
While Trump has continued to avoid giving specifics on his future economic policies, gold has begun to rise again. Gold hit a seven-week high on January 12.
Gold traded at $1,202 per ounce on Monday, January 16, 2017. Gold futures for February expiration were almost 0.50% higher than the previous day’s close.
Gold’s closing price on Wednesday, January 11, hit its highest in the last seven months.
Gold prices for February expiration fell on the last trading day of the year. Gold fell 0.53% and closed at $1,152 per ounce on December 30, 2016.
The US gold futures for February expiration were trading 0.45% and ended at $1,138.8 per ounce on December 27.
Gold futures prices edged higher on Wednesday, December 28, 2016. The short covering in the precious metal likely helped the prices stay afloat.
Amid fears of an interest rate hike, precious metals have plunged during 4Q16. Among the four precious metals, gold took the worst hit.
The trade-weighted US dollar index, or the broad index, which measures the value of U.S. dollar against other world currencies, was up 1.2% when Donald Trump was declared president-elect.
On December 21, 2016, the US dollar slowly edged back from its 14-year high. The fall in the dollar gave some buoyancy to greenback-denominated gold.
The US federal debt is growing at a fast rate—it has even exceeded the GDP growth rate. When major central banks increase debt as a percentage of GDP, their gold holdings often rise.
The recent trend to find portfolio solutions that differ from the traditional 60-40 equity-bond split has been permeated by the use of smart beta indexing.
Gold is likely heading for its fifth consecutive weekly loss. Fear that the Fed will raise rates is hurting gold.
Precious metals have been tumbling due to expectations that the Fed could hike interest rates this month.
The fall in the price of gold on Monday, December 5, 2016, was partly determined by changes in the US dollar.
As precious metals have steadily fallen for the past few weeks, investors have been trying to read the increase in Treasury yields during the same period.
Gold rebounded on Friday, November 25, 2016, during early trading hours. Its bounce back was most likely due to the halt in the dollar’s rally.