The gold price has enjoyed a pre-Christmas rally, despite news from the US that the volume of trade has been slower in the run-up to the holiday.
The gold price per troy ounce jumped from £714.43 at 21:00 on Friday (18 December) to £725.74 at 17:00 on Tuesday (22 December). At 09:00 today (23 December), gold had lost a little ground and the price was £721.93 per troy ounce.
The rise comes despite the perceived wisdom that gold prices dip when interest rates rise, as they did last week in the US. Although there was a fall immediately after the US Federal Reserve increased the cost of borrowing by a quarter of a per cent, gold prices have held strong since.
Market analysts are now split on the direction the gold spot price will take in the New Year. Some are predicting the precious metal will fall in value, which of course will signify a good time for individual investors to build up their gold bullion collection. However, others forecast an increase in the gold price in the months ahead.
Gold is likely to hold its own if the value of the US dollar continues to weaken; the dollar has recently been enjoying high prices but some weakening in the currency has buoyed up the gold price.
Analysts point out, however, that the current gold price increase is taking place in a market where many traders have already signed off for their Christmas breaks. The next stage in the gold price’s latest pattern is now unlikely to become apparent until 2016.
Bob Haberkorn, a broker at RJO Futures, told the Wall Street Journal: “The downside for gold appears to be limited, at least until the end of the year.”
If you’re still seeking a late Christmas gift, gold is of course a traditional choice – alongside Frankincense and Myrrh, which are a tad less expensive with prices ranging from £10 to £15 per kg!
