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FX.co ★ Gold could fall below $1,000 an ounce

Gold could fall below $1,000 an ounce

Gold could fall below $1,000 an ounce

Weighed down by the strong dollar and Fed’s rate hikes, gold price could fall below $1,000 a troy ounce through 2017, analysts at BNP Paribas and Rising Glory Finance said.

However, experts at BNP Paribas believe that although the gold price would fall below this level, it would still continue an uptrend. The last time the gold price was below $1,000 an ounce was in October 2009.

According to Harry Tchilinguirian, head of commodities strategy at BNP Paribas SA in London, the Fed’s tightening monetary policy course contradicts the government’s plans to soften fiscal policy. Higher borrowing costs will boost the dollar and will affect the gold price.

The Fed said it plans three rate hikes in 2017, while US President-elect Donald Trump intends to cut taxes and increase public spending.

Currently, gold trades at $1,200 a troy ounce, up 0.4% from the previous day’s close level. In December 2015, the gold price hit $1,123 an ounce.

* এখানে পোস্ট করা মার্কেট বিশ্লেষণ মানে আপনার সচেতনতা বৃদ্ধি করা, কিন্তু একটি ট্রেড করার নির্দেশনা প্রদান করা নয়
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