Gold in a Downtrend

Gold is having major difficulties this month as price soared to a high of $1,337 in the beginning of November and now is trading at $1,188 with a low of $1,171. Gold bulls were caught short by the surprising reaction of market participants to Trump's Presidency. The US dollar strengthened to more than 13 year high pushing the safe haven to its February level below $1,200.

This latest move killed all the gains that were made during the year that actually made Gold the best asset to have in your portfolio in 2016. Now all Gold holders are having the worst performance in their indexes and the worst part is we still don't know what to expect until the end of the year.

We have the US rates raise in December, then in January Trump's steps into office and all this will be highly influencing the Gold market. If it turns out to be positive, then we might see Gold revisit the low of $1,049 made in 2015 and possibly go lower.  On the other hand, if Trump and Congress have differences and conflict in their views, then Gold will once again be an asset you want to have in your portfolio.

Chart: XAU/USD D1