The sharp drop in the price of gold during the last two months of 2016 destroyed traders’ faith in the gold market.
As gold prices fell 10.9% to $1,151.70 from Nov. 1 to Dec. 30, traders and analysts surveyed by Bloomberg grew increasingly bearish. On Nov. 25, the percentage of bearish traders and analysts was roughly 19%. That climbed to 35% on Dec. 2 when the gold price hovered near a 10-month low of $1,177.80. While that bearishness retreated back to about 19% on the Dec. 23 survey, this was still a large percentage of gold traders who saw gold continuing to fall.
But that bearish sentiment wouldn’t last, and by Jan. 6, roughly 70% of those surveyed had turned bullish. Now, this increasing bullishness will push the price of gold up 15.2% from their current $1,215 level by the second half of 2017.
This post was published at Wall Street Examiner on January 17, 2017.
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