Gold Bars

Gold Price Dropping

Dateline 12-Feb-2021

There is considerable pressure mounting on the value of Gold, and thus on its price. Down to US$1817 per ounce today.
The base pricing is in USD, and with the rising value of the Australian dollar, investing in Gold now is betting that the Aussie dollar will not rise further.

Gold has lost its edge across the globe with savvy investors looking to fake gold (Bitcoin and the like).

As seen recently, precious metals are susceptible to manipulation by groups of pseudo short term investors. This happened recently with Silver during the GameStop debacle.

If you are heavily invested in precious metal, and can escape with a profit, or a modest loss, now is the time to jump.
Gold is likely to hit US$1600 again soon.

Double Whammy

One thing that causes issues with a Gold investment in Australia, or any country where their currency value varies against the US$, is that if the Gold US$ price drops, and the local currency appreciates against the US$, in terms of the local currency, the local investor loses twice.

The best scenario is for the Gold price (in US$ terms) rises and the local currency devalues against the US$, then a sale of ones Gold assets will generate a higher return at the local market.  This will give a double benefit.

 

Going Down

Gold Trending Down

Dateline February 17

And down she goes further. Today Gold at US$1788 per ounce

Dateline February 19

And down she goes further. Today Gold at US$1770 per ounce

Dateline March 5th 2021

And down she goes further. Today Gold at US$1694 per ounce. Glad I jumped when I did.

Dateline March 9th 2021

Gold drops more today. Setting a real trend now... Today Gold at US$1681 per ounce.

Disclaimer:
The foregoing is the considered opinion only of KangaTalk Bruce.
You should do your own research before acting on any advice given or before accepting any given forecasts here.

Posted in Finance, Gold.