The gold spot
price fell by as much as $23.40 on Tuesday morning due to a slew of technical
factors that combined to force gold closer to the $1,200 per ounce level. As of
1pm EST gold’s spot price was $1,209.40, down $19.50 for the trading session.
Gold’s steep
decline today has been attributed by Certified Gold Exchange analysts to a
variety of factors, including bearish technical indicators that show gold could
lose more ground before rebounding. The yellow metal is at a 5-week low right
now because the U.S. Dollar Index has been rising steadily for over a month.
Interest rates
have been a key driver of gold and silver prices historically, and current gold
price movement indicates this is still the case. Although the Federal Reserve’s
head, Janet Yellen, has indicated that interest rates will most likely rise in
the first half of 2015, the current prime lending rate of 0.25% has served to
boost stock indices. Many U.S. stock markets are at or near record-highs or
multi-year highs, causing some investors to divert funds away from other
assets.
The Fed,
meanwhile, will host a Federal Open Market Committee meeting tomorrow
afternoon. This meeting could provide clues or outright answers about when interest
rates might start to climb.
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