Gold value is still experiencing a bumpy ride on its approach to break the resistance of $1,395 per ounce. However, it is expected to reach levels above $1400 in the near future. Analysts have been unable to predict when this will be because of various events working against one another, but Gold value has been seen a low of $1,385 within the last 24 hours and a peaking at $1,395.
In August 2011 gold price was a massive $1,884 per ounce but has not seen these huge prices again since, gold investors are waiting patiently for a recovery to those levels. Do not be mistaken though, some traders made a considerable amounts of profit using sell trades on the back of prices seemingly going in free fall down as low as $1,223 in July 2013, but where there are winners there are always losers.
Some investor who held physical gold may have simply held there trade until they saw better values and undoubtedly some investors are still holding gold for now, in view of the fact that expectations are that in the coming months or years gold will see a dramatic hike in value.
Political events affecting gold value
Recently there has been a mixed bag of economic data coming from all directions which has prevented any momentum in either an upward or downward trend taking hold, meaning value is ricocheting off of resistance. However this predicament will not last forever, and events that need to be monitored are the risk of a U.S. airstrike on Syria and the world´s growing political unrest. Add to that slow growth of the world´s economic recovery – or as some predict the crash before a recovery. The slowing of Quantitative Easing in the US is also playing a major role in this formula and it could derail any increase in the value of gold.
Traders are commenting today that they expect considerable gains in commodities and in particular oil and gold, if the U.S. Congress vote ‘yes’ to a Syrian strike. Traders are already prepping their portfolios ready for action. Prices are on the low side right now so they are opening buy position with the assumption of the spike in prices. Some traders will probably sell with a medium gain should a spike be seen, however other traders will wait it out for long term gains expected in the future and not simply in response to today’s U.S. drama.
The long game looks very green, while gold demand outstrips supply and we face a journey towards reaching the end of world finite gold supply. Amongst investors there are collectors, who by all accounts will hold their gold for an unlimited amount of time and we can’t imagine the value of their collections when supply does runs out.
Assess gold value
With so much at stake on the world stage, predicting gold value at the moment is almost impossible to say. If you are thinking of investing in gold you may want to wait several weeks to see what happened politically and determine how events affect gold value.