I Know First Review: Record Low for Gold Prices

I Know First Review

I Know First Review

Gold is a chemical element with symbol Au and atomic number 79. In its purest form, it is a bright, slightly reddish yellow, dense, soft and malleable. Chemically, gold is a transition metal and a group 11 element. It is one of the least reactive chemical elements, and is solid under standard conditions. The metal therefore occurs often in free elemental form, as nuggets or grains, in rocks, in veins and in alluvial deposits.

I Know First wrote a Seeking Alpha Article about Gold on Dec 31st 2014. The article argued that their stock had a bearish signal and Goldman Sachs believes that the Ukraine-Russia crisis and economic weakness in Europe and Japan have been supporting gold somewhat, but prices are being pressured by Federal Reserve policy. the stock price has decreased by 9.22%, as the article correctly predicted

Gold price nears 6 year record low as hedge funds place massive bearish bets on gold.

On Monday on the Comex market in New York, gold futures with February delivery dates experienced the worst trading day in more than a month, hurt by a stronger US dollar  in anticipation of the first-rate hike in nine years later this week.

In late afternoon trade gold was exchanging hands for $1,059.60 an ounce, down $16.10 or 1.5% compared to Friday’s close. Gold dipped to its lowest in nearly six years at the beginning of the month at just above $1,050 an ounce.

The likelihood that Federal Reserve will raise rates from near zero where it’s been since December 2008 has now reached more than 80% according Fed Fund futures prices. Higher interest rates boost the value of the dollar and makes gold less attractive as an investment because the metal is not yield-producing.

At just over 1.4 million ounces the market is still in its third biggest net short position ever, surpassing bearish positions entered into in July and early August.