All the major economic events in the year 2016 have come to an end after the FED hike their interest rate in their last FOMC meeting minutes. The recent rate hike by the FED has strengthened the U.S dollar against its all major rivals I the forex industry. In general, the intensified strength of the green bucks in the financial sectors pulls down the price of gold in the global market. Since the value of the gold is measured in the dollar, a rate hike in the global market makes it difficult for the foreign investors to buy the gold in the global market which ultimately creates a low demand in the global economy causing the price of gold to fall in the market. If you have a clear understanding of the financial analysis of the market then you can easily open a trading account with the broker and make some decent profit in the next year just by analysis the market sentiment. However, in order to trade the market professionally, you also need to have strong fundamental analysis skills. In the eyes of trained professional, the price of gold might fight back against the green bucks in the year 2017 since the FED will be needing at least two rate hike to maintain the ongoing strength of the U.S dollar in the global economy. Moreover, the central bank will be also pushing the FED for at least two rate hike in the year 2017 which is very unlikely. For two consecutive rate hike in a single year, the economy needs to do extremely good in all its sector otherwise, an immature rate will most likely create a new recession in the country. Most of the expert gold investors are waiting on the sideline to buy the gold at the lower level since they are hoping a strong turn around at the old price from the year 2017.
There has been a sharp decline in the commodity market and it falls by 3% on yearly basis but if we compare five years data then we will see sharp fall for near about 7% in the market.IN the September 2011 the price of gold strongly rallied in the upward direction and scored a record high in the market after hitting the $1900 mark in the market. After marking a significant high in the global market the price started its bearish correction in the market and hit the key support level where the price of gold per ounce was at $ 1050.This is the lowest level was achieved in the month of December 2015.In that level, the price of gold formed an initial bottom in the market and again started its bullish move in the global market. Considering the fact many traders went long at that time and if you think to trade the gold market then you can also trade the precious metal with the Swiss broker with an extreme level of confidence. However, the current price of gold is at $1136.50 per troy ounce which resulted in a 0.68% gain in the market. The price of gold was up by $7 or 6.2% in the last trading session and it ultimately settled the price at 1136.80 level in the market. On the last Friday, the dollar loses its strong grip in the market and on that event the price of silver and platinum also rallied high at the market. Due to slightest weakness in the green bucks all the precious metal went t up on the market and closed with a positive gain in the market. This sudden gain in strength in the precious metals gives us a slight indication that market has already absorbed the U.S interest rate hike news which was based on 25 basis points.
The recent inflation policies by the chines government have also created a light of hope into the mind of gold investors since it will result in huge cash flows through ETFs which is often known as Electronic trade funds and a result the price of the precious metal is most likely to rise in the global market. On the other hand, the newly elected U.S president Mr. Trump has stated that they are going to increase their fiscal spending and cut down their taxes and this optimistic statement has created a strong positive sentiment among the U.S consumer. So we are sure that we are going to see plenty of volatility in the gold market in the next year. Trading the precious metal in Swiss broker is extremely profitable as price feed are always accurate and traders get the fundamental overview of most of the broker in today’s world. Most importantly the leading gold analyst in today’s world has also declared that the ongoing demand for the jewelry item from china and India will rise to great extent from the very beginning of the year 2017 and this might act as the bullish price driving catalyst in the global market. According to World Gold Council, the demand for gold from its premium consumers was low in the year 2016 since most of the countries were extremely cautious to buy the gold as the price was not stable at all. To be precise the price dropped in the market like a falling stone after hitting a record high in the year 2011.On the other hand, the FED will not go for three consecutive rate hike in the next year and if this happens the U.S dollar will get significantly weaker causing a strong rally in the price of precious metal.