Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • AI Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    • Postcards
Login Archives Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • AI Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    • Postcards
    ×
  • Subscribe
Enter stock ticker or keyword
×
Join 100,000+ Like-Minded Investors Today
Twitter
Tags: gold
Stocks: ABX, GG

Bearish Gold Price News Won't Stop Our Pick from Surging 63.1% by 2018

By Money Morning News Team, Money Morning • June 1, 2017

Start the conversation

Leave a Reply Click here to cancel reply.

You must be logged in to post a comment.

The latest gold price news today (Thursday, June 1) shows the metal down 0.7% and trading at $1,267 per ounce. That erases most of yesterday's 0.8% gain to $1,275.

There's one important reason why gold prices are down today. The May jobs report indicated 253,000 jobs were added last month, which crushed expectations of 170,000. And that new development could impact whether or not the Federal Reserve raises interest rates again at the next FOMC meeting on June 13-14. This could consequently send the dollar higher and negatively affect gold prices.

Video
Three Catalysts for Higher Gold Prices in 2017
Despite this bearish gold price news, Money Morning Resource Specialist Peter Krauth stands by his bullish gold price prediction. He believes the gold price will rally 10.5% from the current level to $1,400 by the end of the year thanks to the metal's falling supply, increasing demand, and attractiveness as a safe haven.

But our even bolder prediction concerns our gold stock recommendation. We think the long-term rise in gold prices could boost shares of this mining company by as much as 63.1% over the next year.

First, here's a closer look at the gold price news dragging down gold today...

This Gold Price News Is Pulling the Metal 0.7% Lower Today

The biggest reason why the metal is down today is the surge in private-sector hiring last month.

According to the payroll processor ADP LLC, job growth in the private sector - which includes all for-profit businesses that aren't operated or owned by the government - saw a sharp rebound in May. Employers added 253,000 jobs last month - up 45.4% from a six-month low of 174,000 in April. This smashed expectations of 170,000 new jobs.

gold price newsThe May private jobs report is indirectly dragging gold lower today because the strong numbers all but confirm another rate hike at the conclusion of the June FOMC meeting. Strong jobs data often indicates a humming economy, which entices the Fed to raise interest rates to ensure the economy doesn't become overheated. According to the CME FedWatch Tool, the probability of a June rate hike is 95.8%.

The threat of higher interest rates usually boosts the value of the U.S. dollar, which often has a short-term negative effect on the gold price. A more valuable dollar reduces the price of dollar-denominated commodities like gold. That's because a higher dollar makes it more expensive for users of other currencies to buy gold, which effectively reduces demand.

Editor's Note: An incredibly rare gold anomaly is shaping up in the markets as we speak -- one that has occurred ONLY twice in the past 20 years. And it's about to happen again. Details here...

But we're confident that the gold price will rebound through the rest of the year, thanks to strong fundamentals like supply and demand...

According to data from the World Gold Council, global gold demand reached 1,034.5 tons in the first quarter. Meanwhile, global supply clocked in at only 1,032 tons. That shortage - combined with record demand in Europe, where investors purchased eight times more gold exchange-traded funds than U.S. investors - will push gold prices higher in 2017.

And for investors interested in buying gold stocks, we've found one of the best companies to invest in for long-term returns. In fact, shares of this globally dominant gold miner are expected to soar as high as 63.1% through May 2018.

Here's our pick...

The Best Gold Stock to Buy for a 63.1% Return in 12 Months

Here Are 10 “One-Click” Ways to Earn 10% or Better on Your Money Every Quarter

Appreciation is great, but it’s possible to get even more out of the shares you own. A lot more: you can easily beat inflation and collect regular income to spare. There are no complicated trades to put on, no high-level options clearances necessary. In fact, you can do this with a couple of mouse clicks – passive income redefined. Click here for the report…

Claim My Free Report

Subscribe
Login
Notify of
guest

guest

0 Comments
Inline Feedbacks
View all comments


Latest News

September 20, 2023 • By Garrett Baldwin

Postcards: Captured by Vines... and Regulation

September 20, 2023 • By Tom Gentile

How to Cash In On The Most Perfectly-Timed Selloff in History

September 18, 2023 • By Garrett Baldwin

Dogs That Are Fluent in Spanish for $200, Alex.
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Penny Hawk Midday Momentum
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Quantum Data Profits Flashpoint Trader Darknet Alpha Accelerators Brutus Alerts Resource Traders Alliance L.A.U.N.C.H. Investor Rob Roy Trader Long-Term Equity Profits

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz