It is observed that the gold has seen a steady decline in price through 2016. It is natural that investors are worried about the price of the yellow metal in 2017. Their worries may also be well founded as it turns out, since, if experts are to be believed, the price of gold could quite easily sink below $1,000 in 2017.
A dip in gold price is to be expected. The market for precious metals continues to be bad. Not only gold, the bad news extend to silver as well. The majority thought, however, remains moderate. This is a bearish sign. There is a good reason for such an assumption: the yellow metal had lost more than five percent of its value in a span of two days in November. The bearish expectation is that gold prices will dip below $1,000 sooner rather than later.
Clear signals are being sent by the gold charts. The first sign of such low prices when gold slid beneath the notable $1,250 level. This is a resemblance of the gold crash which occurred between April and June 2013. All signs indicate that the metal will continue its slide to the lower part of the price range the portion where it could break market resistance levels and go below $1,000 per oz.
Gold as a precious metal needs some knowledge to trade it. It is both an inflationary asset and a fear asset. The first is due to the fact that the value of the metal rises with inflation. The second is so as the price of the yellow metal also rises when fear and uncertainty grips the market. The initial six months of 2016 saw markets led by fear. This is why gold prices rose. However, the price rise halted after some time as fear lost its status as a primary driving force. Gold price subsequently plateaued, and the present price more or less reflects that trend.
The Japanese Yen is another risk indicator across the financial world. It has also dropped considerably in value within the span of the last few weeks. Technical charts of this currency reveal that the Yen stopped its rise at an important resistance level. The fact that the currency is getting such tough resistance confirms the state of the market for gold. Investors should take note of such trends with attention given to planning the point where the price fall stops.