Friday, December 29, 2017

Despite the cryptocurrency craze and constant beatdown of price, gold will close out 2017 with its best year since 2010

In the realm of fundamentals and technicals, one of the most important indicators is how an asset or security closes out a particular month or year.  For example, in 2016 the gold price climbed from a base of around $1085 in December of 2015 only to soar to nearly $1400 by the next November.  And it was only due to the historic election of Donald Trump that kept gold from having its best year of the decade which saw the price collapse over the next month and gain only about 5% at the close of the year.

So it is quite ironic that despite the tremendous headwinds gold experienced here in 2017 with record short positions placed against it in the futures markets, and money that might of gone into bonds or gold speculating in the cryptocurrency markets, that it appears now we will end 2017 with gold having its best year since 2010.

The price of gold is up 13 percent since January and is on target for its best-performing year since 2010. It’s driven by a weaker US dollar and safe-haven buying prompted by global political uncertainties. 
Spot gold was up 0.2 percent, trading at $1,297.39 an ounce as of 11:20 GMT on Friday.
Analysts say the precious metal is also on track for its best month since August and has benefited from technically-driven momentum as well as the dollar downtrend. 
“We expect gold prices to trade higher on Friday, continuing its positive momentum from the previous trading session while the weak dollar index and thin trade also contributed to the rally,” Angel Commodities said. 
According to INTL FCStone analyst Edward Meir, “The weaker dollar could provide more upside fodder for the precious metal going into the New Year, as could a modest wobble in US equity markets. But, the geopolitical backdrop looks fairly tame and would not lend much support.” – Russia Today


Post a Comment