For the past three years, the stock markets across the globe have been extremely volatile as almost every economy across the world has had to deal with the ramifications of the international recession. Because of this, millions of investors have been hesitant to invest in stocks and other unstable investments while instead focusing their investments on gold, silver, and other precious metals.
While the gold price per ounce has continued to increase dramatically over the past few years, many analysts are beginning to think that the price of gold may have reached its peak. On November 1, the gold price per ounce was hovering around $1,700. This was down from the five week high of $1,752 per ounce, which was seen on Friday.
The price of an ounce of gold is expected to continue to struggle to stay above the $1,700 per ounce benchmark. There are a wide variety of factors that could force the price of gold to actually decline. One of the most significant reasons is that stock markets across the globe have actually seen a dramatic increased over the past few weeks. With an improved confidence in stocks, gold investors will likely look to sell off some of their gold to reallocate their investments, this when push down the current gold price.
Another factor which could prevent gold from increasing in value is the strength of the US dollar. As the US dollar continues to increase, especially when compared to international currencies, US investors are more likely to hold their investments in cash as opposed to investing it in gold.
Gold is not the only precious metal to struggle recently. Prices for silver and platinum are both also down compared to their five-week high. The prices of all precious metals will likely continue to slump if the economy continues to head in the same direction.
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