Gold was trading slightly lower on December 23, 2016, before the markets started off their Christmas holidays. Gold’s fall was the result of a retreat of the US dollar from its 14-year high.
Gold looks lucrative at this low mark. Some investors seemed to be tempted to take advantage of prices near a ten-month low after six weeks of falls. Many analysts may be awaiting a pullback in price, as gold’s RSI (relative strength index) is still considerably low.
Gold futures for February 2017 delivery ended 0.26% higher at $1,133.6 per ounce on December 23. Silver fell 0.37% to $15.7 per ounce. Platinum fell the most on the day, falling 1.3% to $890.5 per ounce. Palladium, however, climbed 0.35% and closed at $657.2 per ounce.
The volatility in the overall market has been playing on these loved metals. The higher the volatility in the market, the higher the demand for safety and, therefore, precious metals such as gold and silver. The chance of a fall in these metals remains high as the Federal Reserve remains hawkish about further interest rate hikes in 2017. Trading volumes remained thin on December 23 due to the upcoming holiday season.
Gold has fallen almost $200 following Donald Trump’s victory in the US presidential election. The added optimism among market participants after the election has likely been the reason behind such massive falls in precious metals.