Why Are Gold Prices Stagnant Below $1800 This Week?

TL;DR

Gold prices remain below $1800 per ounce due to a stronger US dollar and record low jobless claims. Key upcoming events, including the Federal Reserve's meeting and the release of consumer price index data, will likely influence future pricing. Analyst Brian London suggests that the Fed's inability to effectively combat inflation may ultimately support rising gold prices.

Transcript

welcome back to our weekly update i'm charlotte macleod with the investing news network and i'm here to give you a quick look at our top stories for the week gold was stuck under the 1800 per ounce mark this week trading between about 1775 and 1790. the yellow metal has faced pressure from factors like a stronger american dollar and this week's 52-... Read More

Key Insights

• 😘 Gold prices have been influenced by a stronger US dollar and low jobless claims, making it difficult for prices to break the $1800 per ounce mark.
• 🫰 The Federal Reserve's upcoming meeting and the release of consumer price index data will be crucial for gold investors, as they could impact the metal's future direction.
• 🧑‍🚒 Brian London believes that the Fed's struggle to fight inflation effectively will eventually benefit gold prices.
• 👾 M&A activity in the gold space continues, with Kinross Gold acquiring Great Bear Resources, potentially triggering a bidding war.
• 🏅 Twitter followers predict that gold prices will trade above $2000 per ounce in 2022.
• 🫵 Investing News Network will be providing outlooks on various markets, including gold and silver, to give viewers a look at the year ahead.
• 🫵 Viewers can access these outlooks and other resources mentioned in the video description.

Questions & Answers

Q: Why have gold prices been unable to break the $1800 per ounce mark this week?

Gold prices have faced pressure from a stronger US dollar and low jobless claims, which have limited its upward momentum.

Q: What upcoming events should gold investors keep an eye on?

Investors should watch for the Federal Reserve's meeting on December 14-15 and the release of the consumer price index data on December 10th, as these events could impact gold prices.

Q: How does Brian London of Gold Newsletter view the Fed's ability to fight inflation?

Brian London is skeptical of the Fed's ability to fight inflation effectively and believes that the central bank may have to reverse its tapering or interest rate hike plans. He sees this as a positive outcome for gold prices.

Q: How has the gold space seen M&A activity recently?

Kinross Gold has entered into a binding agreement to acquire Great Bear Resources, a company focused on its Dixie Gold project. The deal offers shareholders a 40% premium on the company's average price, sparking speculations of a potential bidding war.

Summary & Key Takeaways

• Gold prices traded between $1775 and $1790 per ounce this week, unable to break the $1800 mark due to a stronger US dollar and low jobless claims.

• The Federal Reserve's meeting on December 14-15 and the release of the consumer price index data on December 10th will be key factors to watch for gold investors.

• Brian London of Gold Newsletter predicts that the Fed may struggle to fight inflation effectively, which could ultimately benefit gold prices.