GOLD IN 2018 & THE END OF THE PETRO DOLLAR - Gerald Celente Prediction There is still some optimism in the gold market among some analysts despite the threat of further weakness in the near term as the U.S. dollar has broken out of a more than three-month range. Gold is preparing to end its second week in negative territory; however, analysts note some resilience in the marketplace as prices have managed to hold above the lows seen three weeks ago. December gold futures last traded at $1,272.40 an ounce, down less than 1% from the previous week. Silver prices are also ending its second week in negative territory. December silver futures last traded at $16.745 an ounce, down almost 2% since last Friday. “I think $1,260 an ounce represents a major support level in gold and while we could see price dip below, I think it will be difficult to see a close below this level,” said Bill Baruch, president of Blue Line Futures. Baruch added that he is optimistic on gold because a lot of negative sentiment, like an improving economy and higher interest rates, are already priced into the market. “Ultimately, if you are a gold seller, you have already sold so I expect that any dip below $1,260 an ounce will be bought,” he said. Ole Hansen, head of commodity Strategy at Saxo Bank, said in a recent interview with Kitco News that he remains bullish as long as prices remain above the October lows. He added that he would shift to a bearish stance if prices pushed below $1,250 an ounce. According to analysts, the main hurdle for gold remains the U.S. dollar, with the dollar index ending the week at its highest level in more than four months. However, Baruch added that he could see U.S. dollar momentum hit a brick wall at 96. USD Sees Best Week This Year However, other analysts aren’t as optimistic that gold can rally as U.S. dollar momentum fades. Chris Vecchio, senior currency strategist at Dailyforex.com noted that the U.S. dollar index is seeing its best gains this week so far this year. He added that the latest report on U.S. gross domestic product, which showed 3% growth in the third quarter, shows improvement in the U.S. economy, which supports more monetary-policy tightening from the Federal Reserve, ultimately pushing bond yields higher along with the U.S. dollar. He added that there is room for the U.S. dollar to rally another 3%. “The Two-year yield is at its highest level since 2008, the 10-year yield is at its highest point since March. As U.S. interest-rate potential picks up, it is going to reduce gold’s favor,” he said. “If the U.S. dollar is moving up and yields are moving up, then there is no real reason to hold gold.” Jasper Lawler, head of research at the London Capital Group, said that he is also looking for lower gold prices in the near term; however, he added that any drop could be seen as a buying opportunity as investors could need safe-haven assets. He added that he is bearish on the precious metal since the price hasn’t been able to hold $1,300 an ounce. “It looks like the lows are going to be taken out,” he said. “We could go pretty swiftly to $1,200.” gold silver usd dollar "u.s. dollar" dollars currency forex "forex trading" oil "oil price" commodity debt credit loan "gold price" "sell gold" "buy gold" exports import gas "natural gas" "fine gold" "gold coin" partnership agreement 2018 "new year" cash savings "bank account" deal deals yuan economy jobs employment banking "stock market" markets "interest rate" APR wealth wealthy However, when looking long term, he said that there is still a fundamental reason investors should hold some gold in their portfolio. “The [stock] market is so stretched and when it corrects and panic sets in, people will want gold in their back pocket,” he said. Goldman Sachs said that when it comes to being assessed on the majority of the key characteristics of money, there’s no competition — gold wins out over cryptocurrencies. “Precious metals remain a relevant asset class in modern portfolios, despite their lack of yield,” analysts including Jeffrey Currie and Michael Hinds wrote. “They are neither a historic accident or a relic.” Looking at properties such as durability and intrinsic value, precious metals are still relevant even with new materials being discovered and new assets emerging, such as bitcoin and other blockchain-based cryptocurrencies, they said. In addition, gold is better at holding its purchasing power and has a much lower daily volatility, while bitcoin/dollar volatility has averaged almost seven times that of gold in 2017, the bank said.