Top Stories This Week: Gold Price Takes a Hit - What Happened and What’s Next

Gold has taken a fairly big fall over the last week or so, and was trading at just under US$1,780 per ounce at the time of this writing on Friday (August 13) morning.

The yellow metal was changing hands at around US$1,830 ahead of the latest US jobs data release a week ago, and spent time this week near the US$1,700 level.

The jobs data showed that the US economy added 943,000 jobs in July, with the unemployment rate falling to 5.4 percent, a low point during pandemic times. The increase in jobs was the biggest since last August, and came in ahead of the 870,000 expected by economists.

Gold’s drop has been labeled a “flash crash” in news headlines, with commentators suggesting that an improved economy will lead to tapering measures from the US Federal Reserve. American inflation data released this week has curbed that line of thought somewhat, but with little reaction from gold.

Of course, it’s not all bad news for the precious metal. I had the chance to speak this week with Chris Vermeulen of TheTechnicalTraders.com, and while he thinks the next few months could be slow for gold, what he sees in the charts makes him bullish overall.

Chris explained that there’s a chance gold could sink lower, but said the recent selloff actually took it down to a strong support zone, meaning this could also be a “very big bottom.”

“As long as (gold) can hold that US$1,700, US$1,680 level, this is a good opportunity for long-term investors to be buying” — Chris Vermeulen, TheTechnicalTraders.com

As 2021 continues, he sees gold potentially getting back up to the US$1,900 level and possibly even flirting with the US$2,000 price point. Once that happens gold could break out — but Chris emphasized that the initial process of rebuilding will take months.

With the gold price in mind, we asked our Twitter followers if they think we’ve seen the bottom for gold.

By the time the poll closed, only a small percentage of respondents said they don’t think the bottom is in. Most said it’s too soon to tell, and many believe it’s already happened.

We’ll be asking another question on Twitter next week, so make sure to follow us @INN_Resource or follow me @Charlotte_McL to share your thoughts.

We’re going to close this week with gaming, a sector INN doesn’t get the chance to cover very often. Although many industries were hurt last year by COVID-19 lockdowns and complications, the gaming market saw a major boost in interest as people looked for ways to entertain themselves at home.

With the world now opening up, can gaming continue its hot streak? Experts believe it’s possible, and results from major companies back up that idea.

“I think a lot of people are underestimating a lot of the major trends that are taking place in gaming” — Raj Lala, Evolve Funds Group

For example, big-name video game company Nintendo (OTC Pink:NTDOF,TSE:7974) reported its most profitable fiscal year ever for the 12 month period ended March 31; meanwhile, Microsoft (NASDAQ:MSFT), which is known for its popular Xbox console, said in its latest quarterly results release that its gaming revenue was up 11 percent year-on-year.

Aside from that, market watchers told INN’s Bryan Mc Govern that mobile gaming is seen as a huge area of opportunity. With access to 5G networks rising, players are increasingly able to have experiences on par with console and computer gaming while they’re out and about.

“Mobile gaming is a very, very powerful growth engine for the video gaming industry as a whole. Mobile is just this bright spot in the video game ecosystem” — John Patrick Lee, VanEck

Time will tell as the global COVID-19 recovery progresses, but it seems like gaming’s extensive reach may be here to stay, opening up more ways for investors to potentially profit.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.