Gold is at risk Gold has plunged over 11 percent in the weeks since the U.S. election, and some say the losses will accelerate.
After briefly rising above $1,375 per troy ounce in early July, gold has given back nearly all of its gains on the year. At its Thursday lows of $1,124, gold was just 5.6 percentage points — $64 — away from wiping out all its gains on the year.
If gold does finish 2016 in the red, it would mark the fourth-straight year in which the metal has logged a loss. The last time it saw such a streak 1988 to 1992.
“After that spike, gold ultimately settled back into its base and it really required another two years of basing until it really started to break higher again. We think we’re in a similar basing period, where it’s probably, at best, dead money here, even if it is coming into some sort of support. That prior low at $1,045 I think is the important level here,” Wald said, adding he would “look elsewhere” for investment opportunities.
Gold is generally considered a “safe haven” that people turn to in times of turmoil. And with stocks turning higher, investors appear to see less of a reason to own the metal.
Buz Investors Gold is at risk Gold is trading at $1136.90 per ounce at 10:40 GMT this morning, 0.58% higher from the New York close.
This morning, the precious metal traded at a high of $1138.10 per ounce and a low of $1128.50 per ounce.