Headwinds continue to persist for gold. The global spot price is currently around $1134.00 per ounce. The precious metal will experience pressure that will not allow gold to move up greatly in price. In Fact, it is most likely the price will continue to go down. As stated, in an earlier Edge of Humanity Magazine article, titled Gold and the US Dollar, the safety of the American political system was not factored into the gold bugs pie in the sky predictions of the metal going to $1000’s of dollars per once.
Investors worldwide, for the immediate to mid-range future, will continue to invest in the United States markets. The American real estate market will continue to benefit from foreign investment. Parking cash, in the USA, gives overseas investors peace of mind to sleep like church mice. The dollar is strong and will hold firm for some time. The fed will begin to raise rates, as the economy continues to improve, which will only strengthen the currency.
The new Nuke deal with Iran, will also allow the Iranian oil to come flowing onto the world markets, which will continue to put a downward thrust to the price of oil. This consistent low price for oil will be fantastic for global consumers, but a drag on the price of gold. Further, the United States is also becoming oil independent, which will be another thorn that punctures any rising oil price bubble. Asian gold purchases will affect the price in occasional upward moves, but not in any meaningful way.
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