First 2017 record: Gold hits a 7-week high!
Welcome news for those who already got themselves a couple of gold bars. As worlds' events unfold, gold shows its potential to protect and increase the value of every coin.
What has driven gold prices so high?
Gold rallies for the first time in 2017
It was not late in coming. On 12th January, gold touched the high of $1,205 per ounce – the best figure since 23rd November.
Is the reason out of the public eye?
The main influencing factor has been a weaker dollar brought about by the unpredictability of the future US politics on fiscal policies. No details about tax cuts and infrastructure spending have been revealed to press yet.
Soon after the next Federal Reserve's meeting with presidents from all USA, the outlook for U.S. interest rates (and therefore, for gold) and the future economic situation will be clearer.
The future's ours to see. What will be?
As INTLFC Stone analyst Edward Meir stated “the dollar will roll back to a good proportion of its gains over the course of the month of January and gold should benefit as a result.”
HSBC analyst James Steel declared that politics is playing a key role in driving gold prices in the short-term, and “the $1,200 level will offer stiff resistance and gold may not be able to break it easily.”
Why do experts advise to buy gold now?
Since the fear-of-financial-chaos is constantly on the prowl, authorities state that having physical gold is always worthwhile.
If the dollar keeps shaking and the US politics' outlook is not soon clarified, the record reached today could be the first of many.
