The price of gold is up thanks to the Federal Reserve, just like we predicted.
The FOMC raised rates on Dec. 13, as expected. In the days leading up to the meeting, the U.S. dollar rallied, and gold sold off.
But the dollar would slightly rally on Thursday. Gold opened at $1,257 but retreated over the course of the day to $1,253. For its part, the DXY started out at 93.40 at 8:00 a.m. and rallied to 93.7 by late morning. After a brief pullback, the DXY rallied back to reach 93.65 by 5:00 p.m.
Then on Friday, gold opened a bit higher as the dollar weakened slightly.
The yellow metal started the trading day at $1,261, but sold off as the DXY found some renewed strength. By late morning, the DXY was at 93.90 thanks to optimism over tax-cut legislation, pushing the price of gold back down to $1,254. At mid-afternoon, gold was changing hands at $1,256.
But just as history showed us a mid-December rate hike would boost gold prices, so too will it boost prices through 2018. Here’s why we’re expecting a gold bull market to really kick off in 2018…
Why the Price of Gold Is Heading Higher in 2018
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Peter Krauth is the Resource Specialist for Money Map Press and has contributed some of the most popular and highly regarded investing articles on Money Morning. Peter is headquartered in resource-rich Canada, but he travels around the world to dig up the very best profit opportunity, whether it’s in gold, silver, oil, coal, or even potash.
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