Gold Weaker

Gold is having one of its worst performances in years. The precious metal began the year with the most successful percentage increase going almost to 50%. For the second half of the year, however, Gold lost most of its gains due to stronger dollar and overall economic strength in the USA.

Currently, Gold is trading at $1,170 and it looks like the drought is bound to continue as we head into December and approaching the rate decision in the middle of the month.

According to experts in the field, Gold will gravitate towards $1,200 with a possible low of $1,000 if the US economy continues to over perform in the same direction.

Gold reached a high of $1,375 mid-year and has been depreciating since then. Latest low was made yesterday when price reached $1,157. In order for the trend to turn we need strong fundamentals against the US dollar and that, in the current situation, is highly unlikely.

Chart: XAU/USD D1