Gold on Pace to Reach Highest Price in Three Months

2017 has been good to the gold price. After rallying last week, the yellow metal was at $1,234.40 an ounce as of 3:25 p.m. EST on February 6, on track to hit its highest point since early November. 
Gold’s rally has been driven in part by a weaker US dollar and jobs data released on February 3. According to Reuters, the jobs data showed that wages “barely rose,” meaning that the Federal Reserve is unlikely to raise interest rates in the near term.
Political unrest in the US is also keeping the Fed from raising interest rates, Brian Lan, managing director at GoldSilver Central, told the news outlet. He added that “gold is pointing to push higher from all fronts on charts” and said, “[a]t least in the first half of the year, gold should do quite well.”
Similarly, Naeem Aslam, chief market analyst at ThinkMarkets, told MarketWatch, “given the latest jobs report and Trump’s stance, it is highly unlikely that we would see another rate hike anytime soon.” He said that could be favorable news for gold traders.

Gold tends to do well in times of political and economic uncertainty because it is considered a safe-haven asset.
As Daniela Cambone, editor-in-chief of Kitco, said in a recent interview with The Street, “when investors aren’t flocking to the US dollar, for example, or other spaces, they see gold as that alternative safe haven play. When we see a devaluation in the US dollar, that’s when gold really soars.”
She added that even though Trump has been “sticking to script,” there’s still plenty of uncertainty surrounding his policies, including US trade, immigration and his plans for the US dollar.
On the same note, Andy Schectman, president of Miles Franklin, told the Investing News Network that whether it’s inflation or deflation, “gold is a place to be in.” He also said, “over 5,000 years, nothing has preserved wealth better than gold, and especially in times of uncertainty like we see right now.”
Looking further ahead, David Roche, an independent strategy analyst, told BullionVault that gold will rise at least 6 percent in 2017 “due to the amount of political risk being created by this new US president.”
Only time will tell, and investors will no doubt be following along to see where the gold price will go.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.