Precious metal ticked up on US markets yesterday, but more trouble lies ahead
The gold price ended on a positive note for the first time in eight sessions yesterday but gloom continues to hang over the troubled industry.
Gold for December delivery on the Comex division of the New York Mercantile Exchange crept up by 40 cents to close at $1,088.10 per ounce. Trade ranged from $1,087.40 to $1,094.90.
Trading remains tame as investors await clearer signs on US monetary policy, according to the Bullion Desk. Recent data suggests that the US economy is improving, but the long-term picture remains cloudy.
Boris Mikanikrezai, an analyst at FastMarkets, said: "We believe that the sharp weakening in gold prices was the result of growing Fed tightening expectations. While we remain bearish toward the metal in the near term, we do not rule out short-term brief rallies, triggered by disappointing US data releases."
Although the small increase in prices yesterday was welcomed, the previous metal remains on track for its third-straight year of losses, says Mining.com. The last time gold dropped in value for three consecutive years between 1996 and 1998. This time, industry commentators warn that prices may fall even further.
Gina Sanchez of Chantico Global told CNBC that gold "hates" a recovering economy, higher interest rates and a strong dollar. "Those are all three things we can expect," she said.
Prices hit a three-month low on Friday, prompting analysts to predict further losses.
Source: http://www.theweek.co.uk/gold-price/61682/gold-price-hits-three-month-low-and-could-fall-even-further
Source: http://www.theweek.co.uk/gold-price/61682/gold-price-hits-three-month-low-and-could-fall-even-further
