Investors Expecting Gold To Take A Big Dip
With investors expecting for interests to go up again, gold has gone down once again this month.
Platinum, on the other hand, was equal with palladium. This is a first since back in 2001. Diesel engines use platinum, but these particular engines aren’t favorable.
Spot gold had 0.7 percent decline making it $1,284.37 an ounce. It’s a shame since it fell 1.3 percent during the last session.
Gold futures for the U.S. fell a whopping 1.1 percent for December making it $1,287.50 an ounce.
However, the dollar has finally reached a one-month high after months of bad news.
Investors are expecting the U.S. Federal Reserve to increase borrowing costs by December.
According to Carsten Fritsch, who works as an analyst at Commerzbank, though the dollar is doing well, not for too long.
He goes on to say that the rate hike will be what stops gold from gaining.
Currently, gold is sensitive in the U.S. market.
As a new tax plan gets ready to be set in motion, investors believe that gold is too big of a risk.
With tensions high between North Korea and the U.S., no one knows exactly what’s going to happen to the market.
Yuichi Ikemizu from ICBC Standard Bank, says that everything that gold had won, lost on Friday.
He believes that what’s going on between North Korea and the U.S. is bigger than future policies. Ikemizu expects gold prices to rise again.
Silver has fallen 2.4 percent since the previous session, leaving it at $16.77 an ounce. That is the most the precious metal has decreased since the middle of August. Back then, it was $16.69 an ounce.
Platinum did drop 0.6 percent, making it $916.70 an ounce. The precious metal fell close to 2 percent during the last session.
This was the biggest fall for platinum since the beginning of July. The metal hit a 2-month low that was $912.50.