Since the boom in Gold prices during 2011, the metal has seen a slow but constant slump. Whilst not showing any signs of a fast recovery, it really hasn't bombed either. Quite often a huge bullish spike would be reversed in a wipe out.
However, Gold seems to be propped up by the $1000 level as a support (ish) area. For all the Gold bear chatter, there is still no major dump of Gold, and this could also be seen as people slowly dripping funds into this asset in light of harder times ahead on stock markets.
Sky news Australia reported: "Gold prices a bit higher on Thursday, ending the year down 10 per cent for its third straight annual decline. The metal also faces another potentially challenging year in 2016 amid the prospect of higher US interest rates and a robust dollar."
Source
So the question begs, is 2016 the year to start looking into Gold once again?
In the past, the relationship between higher interest rates and Gold is completely obvious, and we have been at record low rates for near a decade. They can only go one way. And it started in December, and the Fed is expected to add a few more hikes during 2016. Also, stocks are beginning to move from being "growth" investments, to "value" investments. So, 2016 may be a year of ranging for the markets, whilst the larger institutions start to move money into other asset classes.
Certainly one to keep an eye on.
However, Gold seems to be propped up by the $1000 level as a support (ish) area. For all the Gold bear chatter, there is still no major dump of Gold, and this could also be seen as people slowly dripping funds into this asset in light of harder times ahead on stock markets.
Sky news Australia reported: "Gold prices a bit higher on Thursday, ending the year down 10 per cent for its third straight annual decline. The metal also faces another potentially challenging year in 2016 amid the prospect of higher US interest rates and a robust dollar."
Source
So the question begs, is 2016 the year to start looking into Gold once again?
In the past, the relationship between higher interest rates and Gold is completely obvious, and we have been at record low rates for near a decade. They can only go one way. And it started in December, and the Fed is expected to add a few more hikes during 2016. Also, stocks are beginning to move from being "growth" investments, to "value" investments. So, 2016 may be a year of ranging for the markets, whilst the larger institutions start to move money into other asset classes.
Certainly one to keep an eye on.