The price of gold started with a crescendo and then fell to its rock bottom in the year 2016. Gold price is very unpredictable as it depends on various factors. Last year was a roller coaster ride as far as gold prices were concerned. Analysts are wondering what gold rates have in store for 2017. Let’s look at what the trends of daily gold prices for this year are likely to be based on takes from the fields of technical analysis, economics, and investment banking.
Take from the technical analysis viewpoint: Technical analysis can provide some insights when it is used to analyze a specific asset. Unfortunately, the news from the charts isn’t great for gold this year. For years the price per ounce of gold has stayed at around $1,400. Analysts predict a downward slope in daily gold prices for the next five years. Some of the predictions are that the gold price is likely to dip to a low of $1,000 in the year 2017. This analysis is however from only the technical point of view.
Bank’s take on gold prices: The banks have a slightly more optimistic point of view about the daily gold price. But then the banks haven’t been bullish as well. The gold price according to the predictions of most of the major investment banks varies only by a few hundred dollars. To sum up the analysis of the major banks, it looks like the gold price is going to remain stagnant throughout this year.
The economic take on gold price: Gold has always been a ‘fear asset.’ When people start getting jittery about the economy, they tend to invest in gold. When US stocks were off to a bumpy start at the beginning of the year 2016, the price of gold went up. Likewise, when the stock rate is strong, it impacts the daily price of gold. They are negatively interconnected with each other. Analysts predict a good year for the stock market which would be the downfall for gold prices this year.