The Fed predicts that there is going to be three interest rate hikes in the United States in 2017. Interest rate hikes have a huge impact on gold futures, so keeping an eye on the interest rate developments in the U.S. can let you know how gold is going to trend. Even though it is important to keep an eye on the rest of the world, the interest rate and the strength of the dollar are huge factors for gold pricing.
Year-Over-Year Comparison of GCG7
Currently, gold is trending upwards, but there is a lot of rallying left to do. The good news is that when you compare year-over-year future pricing, you see a positive increase. On Jan. 11, 2016, the price of gold was at $1,100.60 per ounce for GCG7, which is the price of February futures. On Jan. 9, 2017, gold is trading at $1,179.10 per ounce for GCG7.
The Past Six Months
Even though this is certainly good news, the current price is much lower than the highest price of 2016. On July 6, 2016, gold was at $1,377.50 per ounce. The current price is also a marked decrease from the most recent high, which was $1,312.20 per ounce on Nov. 2, 2016. Since that date, gold dipped much lower.
The Past Few Weeks
On Dec. 15, 2016, gold reached the lowest point of $1,129.80 since the spike that peaked on Nov. 2. This puts gold at almost $50 higher per ounce than where it was at that dip. This is great news for people who have already invested in the precious metal and a call to action for people who are on the fence about investing.
What’s Coming in the Future?
One thing that could impact the price of gold in the upcoming weeks is the inauguration of President-elect Trump. He is expected to hold a press conference on Jan. 11, 2017. It is likely that the market is going to fluctuate greatly. However, market fluctuations aren’t expected to last long. Once the new presidency stabilizes, the market should follow suit.
It is projected that after the new president is inaugurated, the economy is going to improve. This could mean that we see gold weakening some as the dollar strengthens. You can look back at how gold reacted around the time of the election. It was a great time of fluctuation in pricing because of the uncertainty of what was to come after the shock of the election.
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