• Gold: $ 1,282.32
      Silver: $ 15.43
      Platinum: $ 803.63
      Palladium: $ 1,356.45

    • Gold: $ 1,282.32
      Silver: $ 15.43
      Platinum: $ 803.63
      Palladium: $ 1,356.45

Precious Metals * Private Vaulting * Refinery

Gold Price Falls near 6-Year Low after US Thanksgiving

Gold Price Falls near 6-Year Low after US Thanksgiving

The price of gold plunged on Friday, posting its sixth consecutive weekly decline, while the US dollar strengthened on growing expectations the Federal Reserve will begin raising interest rates next month.

Gold prices, down in 14 of the past 17 trading days in Asia, fell $13.50 or 1.3 percent to $1,056.20 per troy ounce on the Comex division of the New York Mercantile Exchange. With Friday’s loss, the yellow metal has declined in each of the past six weeks, including a more than $120 drop over the last four weeks.

Weak gold prices dragged on other precious metals on Friday. Silver futures declined 13 cents or 0.9 percent to $14.05 an ounce. The grey metal has declined more than 11 percent over the past four weeks.

Precious metals were pressured by a surging US dollar, which was supported by growing expectations that the US Fed would raise interest rates at the December 15-16 meetings in Washington. The US dollar index, a weighted average of the greenback against six global currencies, reached a daily high of 100.20, its highest level since March. It would later settle at 100.02, climbing 0.2 percent.

US rate futures this week implied investors see a more than 70 percent chance the Fed will raise interest rates next month. Higher interest rates will strengthen the US dollar, making the yellow metal more expensive for foreign buyers. As a result, analysts are expecting gold prices to push lower for the rest of the year. Despite being oversold, gold is likely to test $1,000 an ounce in the near future.

Globally, demand for gold remains strong, as investors, consumers and central banks have rushed to take advantage of discount prices. According to recent data, the Central Bank of Russia increased its gold reserves by around 18.7 metric tonnes in October, pushing the 2015 figure to 165 tonnes, just below the 2010 record of 176 metric tonnes.

Gold demand in China, the world’s largest consumer of the precious metal, remains high and appears less impacted by Fed speculation.

Time to buy?

Investors looking to diversify away from fiat currencies are wondering whether the present is the best time to buy gold. According to analysts, traders looking for shorting opportunities should take only light positions, as the risk-reward ratio isn’t favourable at the moment. However, if you’re looking to buy and hold physical gold for the sake of increasing your wealth long-term, the next two months may be as good of a time as any to buy and hold gold. With prices forecast to remain low through 2016, investors will have more than one opportunity to add gold to their investment portfolio.

Consider Byzantium

Byzantium is the largest gold refiner and storage facility in the Caribbean, providing investors with premium, investment-grade bullion bars and coins from around the world. Refined at .9999 fine bullion, Byzantium’s gold coins and bars provide cost-effective ways to increase your holdings of precious metals. To learn more about our offerings, visit our Services section or contact us directly.

Husni “Sam” B, Byznaitum International Ltd SEZC

www.Byzantium.ky

O: +1 345-974-7000

OUR LOCATION

PO Box 2154, Grand Cayman, KY1-1105, Cayman Islands.

Email: info@byzantium.ky

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