Gold lost almost 10% last week and has slid below $1,300 an ounce for the first time since the autumn of 2010. The near-term outlook isn't good. The US Federal Reserve said last week that it was likely to end its money-printing programme next year, which investors reckon makes a rise in inflation less likely.
The prospect of tighter monetary policy implies things are getting back to normal after a crisis not good news for an asset that thrives on bad news. "Gold traditionally appreciates during periods of cheap money' policies" and is vulnerable when they end, says HSBC's James Steel. The rising dollar, reflecting a slow US recovery, is another headwind as gold is priced in dollars.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Millions of over 50s fear pension investment risk – how should you position your portfolio?To de-risk or not to de-risk, that is the question. Act too late and you could face irreversible losses. Move too early and miss out on significant gains that could transform your retirement.
-
£150 off energy bills: millions more to get discount this winterThe expansion of the Warm Home Discount scheme follows a government U-turn on the Winter Fuel Payment. We explain who will get the £150 discount
-
Gold regains some of its shineNews The gold price perked up this week, hitting a four-week high.
-
Gold regains its shine after inflation risks resurfaceAnalysis Gold prices have been rising over the past month as fears of US inflation resurface. Saloni Sardana explains whether this could usher in a new bullish era for the precious metal.
-
The going looks good for goldAdvice With inflation fears rising and interest rates nailed to the floor, the outlook for gold is bright, says John Stepek.
-
Mark Mobius: “I love gold”Features Mark Mobius, perhaps the best-known emerging markets investor in the world, reckons that gold should form at least 10% of any investor’s portfolio. And now is a good time to buy.
-
Gold is poised for a new bull marketFeatures The price of golf has hit a six-year high, breaching the $1,400 an ounce level not seen since August 2013.
-
Why you need to own goldTutorials All the talk of Modern Monetary Theory misses one key point, says Eoin Treacy. We’re already well down the road of printing money to fund government spending.
-
Fed interest-rate rises won’t hold the gold price backFeatures Some analysts worry that higher US interest rates are bearish for gold. But the evidence doesn’t bear this out.
-
The weak US dollar trade is still on – stick with goldFeatures With little chance of higher US interest rates in the near future, the weak dollar trade is still on. John Stepek explains why, and the best way to profit.
