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December 10, 2017

Gold Price and the Dollar | 2018 Gold Price Outlook

by oakley711

The spot gold price and the dollar

gold bars - spot gold price - Gold Price and the DollarGold Price and the Dollar . . . This past week the dollar moved up in the spot gold price move down, actually, it was the worst week for gold prices since July! This past Friday, the February gold futures price was down 2 1/2% from the prior  week to $1249.50 per ounce!

Yes, the spot gold price has now declined for three consecutive weeks in a row, and is now around its lowest price since late July. many gold analyst believe that the US Federal Reserve is going to hike interest rates at their next meeting. any time US interest rates increase,  the gold price usually declines against the dollar.

It seems now that many gold analyst are certain that a Federal Reserve rate hike is going to occur next week. It’s this outlook for an eminent US interest rate increase, that has pretty much been the major catalyst for the lackluster performance of the gold price over the last few weeks. now, many gold analyst are looking to 2018 for indications  of where the spot gold price may be headed in the new year.

Gold Price and the Dollar | 2018 Gold Price Outlook

California gold nugget

California gold nugget

The US Federal Reserve has already stated that it intends to raise interest rates in 2018. So, I believe that’s already built-in to the gold price. But, the frequency and the magnitude of the Federal Reserve Board’s interest rate increases in 2018 other real unknown questions.

On the bright side for gold investors is the fact that for the last four years, gold has sold off in December and then snapped back in January! when this pattern of a drop in gold prices in December leading to arise in January developed in 2014, gold gained approximately 9 1/2% from its mid December low through February 2015! The following year, in 2015 for the same time. Gold gained approximately 21%! lastly, for the same time. In 2016 through February 2017, the spot gold price increase  by approximately12%!

There is no doubt that this looks like a very strong pattern for gold prices in the December through February period. But, investors shouldn’t be calling their broker right away, because for years is not a sufficient time frame to predict with any certainty the probability that the spot gold price  will again bounced back from its December lows in January 2018!

Many investors in America particularly suffer from US dollar chauvinism, believing that the ultimate measure of wealth is the US dollar, in spite of all evidence to the contrary (like 50 years of inflation).

When these last holdouts bail on the buck, the price of gold will go through the roof and probably in a very short period of time.

For more information about investing in gold, you may wish to view this Wikipedia gold article.

 

Gold Price and the Dollar | 2018 Gold Price Outlook

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