Gold prices reflect the marketplace’s underlying value attributable to gold as determined by futures (derivatives) securities. Because gold is a resource commodity, its value is inherently volatile and, according to history, tends to trade in “mania” phases.
Gold prices in recent history have been quite strong, rising for the better part of a decade. Currently, gold prices have been experiencing a large price consolidation and many financial market participants feel that the commodity is about done its current price cycle.
Gold prices are influenced by a number of factors, including the value of the U.S. dollar, geopolitical events, and the perception among futures traders regarding global demand and supply for physical gold.
Strength in gold prices often reflects a view in the marketplace that there is uncertainty in the world. Their volatility makes them difficult to forecast and predict their direction. Because of this, the underlying commodity represents a risk-capital asset.
When I look at the current gold prices, I question if we are in the process of making a long-term bottom.You see, when bottoms are being placed in, there are certain phenomena that take place. And the gold market is certainly seeing a few of them.Gold Prices Finding a Solid FoundationOne of the biggest factors convincing me to believe that. Read More
The basic factors that determine the price of an item, demand and supply, continue to suggest gold bullion is setting up to surprise investors on the upside. In fact, I believe current gold prices have a “for-sale” sign on them.Gold Bullion Buyers Continue to BuyIn these pages, I have been paying attention to three sources of demand. Read More
The gold outlook for 2015 has, so far, been dull, but considering external factors, things could turn around for gold prices in 2015.Economic Drivers Affecting Gold Price Forecast for 2015Between 2001 and 2011, the price of gold soared more than 600% to $1,923 per ounce. Despite the poor performance of gold since then (trading near $1,200),. Read More
Gold acts as a great hedge against uncertainty. With this in mind, I see at least three factors that can spook investors this year and send gold prices skyrocketing in a short time span.Gold Prices to Jump Higher as Bonds Sell-off ContinuesOver the past few months, bonds markets across the globe have faced severe headwinds. Please look. Read More
The gold price trend for 2015 remains sideways. But, there are several catalysts that can drive gold prices higher. The forecast for gold prices in 2015 and beyond may not be as pessimistic as investors assume.Gold Price Trend: 2011 to 2015After gold prices reached a high in August of 2011, they declined over 40%. To date, the gold price. Read More