Between Bitcoin prices surging to nearly $17,000 and oil prices reaching yearly highs, it’s no wonder gold prices have fallen this week. And now the Federal Reserve is set to hike interest rates this week…
According to the CME Group, the probability of a Fed rate hike on Dec. 13 is currently at 90.2%. That’s powering the U. S. Dollar Index (DXY), which has gained nearly 100 basis points in the past week.
These are all formidable headwinds for the gold price.
But there’s light at the end of this tunnel, and the tunnel may be shorter than you think…
Why the Price of Gold Has Fallen
Before we show you how the Fed’s rate hike decision will move gold prices, here’s a look at last week’s gold price action.
Gold’s start to the last trading week was innocuous. In late Sunday evening trading, gold gave up about $5, then opened a few dollars lower, at $1,273, on Monday, Dec. 4. Slight DXY weakness helped gold as the trading day wore on, and the metal clawed back to close at $1,276.
This post was published at Wall Street Examiner on December 11, 2017.