Start the conversation
Gold has traditionally been a safe haven for investors concerned about market crashes.
In fact, despite recent stock sell-offs over the possibility of nuclear war with North Korea, investing in gold has been a losing strategy.
Whatever happens, that's going to continue for the next couple of weeks.
And that's not the only thing keeping gold prices from going up…
Here's everything you need to know…
Why Even North Korean Missiles Can't Boost the Price of Gold
For the past week, gold prices have been low – and that will be true for at least the next couple of weeks.
In fact, take a look at what the Money Calendar sees coming for the rest of this week:
There's a clear "bearish" outlook for the most popular stocks in the markets. That's why I'm not crazy bullish right now in general.
But when it comes to gold, things look even worse – at least for now.
Traditionally, gold prices go up when stock markets go down.
Now, recent stock sell-offs have happened mostly because of news about North Korea and its leader seemingly provoking a nuclear war.
But every time this happens, the markets take a dip and then bounce back to new all-time highs rather quickly, usually within a couple of days.
That means there's not much time for gold prices to go up.
But that's not the only hurdle gold has to clear…
How the Fed Is Keeping Gold Down
Gold also has to contend with rising interest rates.
Now, the Fed didn't raise rates at its last meeting on Sept. 20, but there's still a chance a hike could happen by year's end.
Moreover, while the Fed kept its prognosis of three rate hikes next year, it dropped its assessment for 2019 down from three hikes to two.
That affects gold over the longer term, and that's partly why gold prices haven't skyrocketed.
Another hurdle affecting gold prices is the rise in stocks we've seen over the past few months.
This has been an impressive and highly resilient bull run for the markets, and it seems investors still believe that Trump's promised tax reform is coming.
That belief is one of the main reasons stocks have continued this run.
Now, stocks have recently slowed down a bit.
But I wonder how much of a concern this slowdown is.
After all, every time someone writes about stocks being overpriced and says "this can't last" – the stock market jumps higher.
And as long as stock prices keep being propelled higher, gold prices aren't going anywhere.
Now, when stocks go down in the short term, you may be tempted to put some money to work in gold.
But before you do, look at the chart below…
About the Author
Tom Gentile is one of the world's foremost authorities on stock, futures and options trading.
With more than 25 years' experience trading stocks, futures, and options, Tom's style of trading systems and strategies are designed to help individual investors propel themselves past 99 percent of the trading crowd.