Gold prices continue to decline while the US dollar increases in value and the job market becomes more resilient.
Federal Reserve Chairwoman, Janet Yellen, praised the strengthening economy, highlighted by lowered unemployment rates and robust opportunities for new college graduates.
The FOMC unanimously voted in favor of raising short term interest rates, with the added note that rates may again be raised as many as 3 times in 2017. Increased interest rates and positive changes in the labor market almost assuredly correlate to decreased gold prices.
Because gold is known as the safe haven asset in times of market volatility, its value is lessened when the market shows strength and stability. The gold bear market has continued for weeks amidst a flurry of uncertainty intermingled with optimism. Policies proposed by President-elect Trump and recent geopolitical events have given way to a stronger US economy, creating a market more apt to bold investing versus the classic safe haven commodities.
Most economists agree the bear market for gold will continue in the near future, barring a major market disruption.
If you have considered investing in gold, Provident Metals has bullion that features creative designs at low premiums. Take advantage of this recent drop in gold prices, and pick up a PAMP Suisse 1 oz Gold Bar, on sale now.
Yes, yes, yes, the dollar is the tallest short person in the room. When will that end? No one can say. Unfortunately investors must use their OWN data/metrics, experience, knowledge and a little intuition to choose investments given the data we are fed from the central banks and governments is highly flawed and patently dishonest. 2017 will be “Must See TV” if you catch my meaning. Seen and unseen sovereign debt will of course continue to rise, employment numbers will be made to continue to benefit those in power and the rest of us if we are smart will use the predicted bear PM market to buy. Stay the course!
Could not agree more!