Gold prices continue to decline while the US dollar increases in value and the job market becomes more resilient.
Federal Reserve Chairwoman, Janet Yellen, praised the strengthening economy, highlighted by lowered unemployment rates and robust opportunities for new college graduates.
The FOMC unanimously voted in favor of raising short term interest rates, with the added note that rates may again be raised as many as 3 times in 2017. Increased interest rates and positive changes in the labor market almost assuredly correlate to decreased gold prices.
Because gold is known as the safe haven asset in times of market volatility, its value is lessened when the market shows strength and stability. The gold bear market has continued for weeks amidst a flurry of uncertainty intermingled with optimism. Policies proposed by President-elect Trump and recent geopolitical events have given way to a stronger US economy, creating a market more apt to bold investing versus the classic safe haven commodities.
Most economists agree the bear market for gold will continue in the near future, barring a major market disruption.
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