gold

What is the relationship between interest rates and gold?

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The relationship between interest rates and the price of gold is complex and can be influenced by a variety of factors. Generally, there is an inverse relationship between interest rates and the price of gold. This means that when interest rates go up, the price of gold tends to go down, and vice versa.  We discuss how this relationship works below: 1. Opportunity Cost: When interest rates are high, it becomes more attractive to invest in interest-bearing assets such as …

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Why has the price of gold dropped?

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Gold is below the US$1200 per ounce mark for the first time in more than two and a half years.  But despite recent global uncertainty, the price of gold has not been going up. Gold is usually a safe haven when there is instability or uncertainty in the market place. So what are the reasons for the drop in this precious metal? Strong US dollar Strength in the US dollar works against gold. Gold is denominated in US dollars so …

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Why Gold is getting ready for a big move

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We have been bullish on gold prices throughout the last year. During this time our clients have made some great trades in gold stocks such as Northern Star Resources (ASX:NST), Evolution Mining (ASX:EVN), St Barbara (ASX:SBM), and Silverlake Resources (ASX:SLR), to name a few. The gold price The gold price hasn’t moved much in the last few months though. In January, gold prices moved to within a whisker of the 2016 highs near US$1370 (horizontal blue line). However, since then, …

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Analysis of the silver price chart – our forecast

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The chart for silver is looking very interesting here and we could soon be seeing an opportunity to buy silver stocks if prices break to the upside. A recent article in the Australian Financial Review noted that silver prices have drifted lower. When we look at the chart though, we can see that the pullback doesn’t appear very bearish. Below is a weekly candlestick chart for the spot price of silver, in $US per ounce. How we read the silver …

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