Price of gold continues its fourth-quarter slide
- Published: Dec 14, 2016, 8 AM
The price of gold has continued its November slide during the first half of December, though it is getting a boost on Dec. 14 related to a much-anticipated announcement from Federal Reserve Chairman Janet Yellen.
According to Kitco, the price of one ounce of gold stood at $1,163.10 at 12:13 p.m. ET on Dec. 14. That's about $200 less per ounce than gold's high point this year.
Kitco data shows that the price closed at $1,156.10 on Dec. 12, which was the lowest closing price for gold since Feb. 5, when it closed at $1,150.35.
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It wasn’t always this way for gold in 2016.
Gold stood at $1,237 per ounce to finish March. It would climb as high as $1,366.25, on July 6, before gradually falling back below $1,300.
It briefly topped $1,300 in the immediate aftermath of the unexpected Nov. 8 election of President-elect Donald Trump, but quickly returned to sub-$1,300 levels.
How changes to Islamic Sharia law could lead to huge rise in gold investing: The international organization that sets Sharia law’s financial standards recently opened up gold-investing opportunities.
The price of gold began November at $1,288.45, and it has since fallen 9.7 percent.
As a safe-haven asset, the price of gold is likely reacting to positive developments in the U.S. stock markets. The Dow Jones Industrial Average has topped 19,000 to record highs in recent weeks, and is currently surging toward the 20,000 level.
Why is the price of gold on the rise this week?
Some expect Yellen, the Fed chairman, to announce on the afternoon of Dec. 14 the first interest rate hike of 2016.
So increased gold buying Dec. 12–14 is likely being done by investors who are hedging against dips in the financial markets due to negative reactions to the rate hike.
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