Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

What To Make Of Gold Prices In 2015

By PikerTrader CommoditiesFeb 26, 2015 12:56AM ET
What To Make Of Gold Prices In 2015
By PikerTrader   |  Feb 26, 2015 12:56AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

For much of the past decade, gold has been viewed as one of the most stable and predictable investments in existence. The price of gold was rising slowly but steadily, and crises in world politics and financial markets continually proved that the precious metal had value as a protective hedge. And yet, in mid-2012, this popular outlook began to change as gold prices became more volatile than most modern investors are used to seeing.

Take a look at the 10-year gold pricing chart at online precious metal market, and you’ll see the trend as clear as day. While gold today remains at a significantly inflated per ounce price than what we saw a decade ago, the steady rise that investors got used to between 2005 and 2012 is no more. Gold prices today look more like the mid-year prices from 2010 than the dramatic highs of mid-2011.

But what does all that mean for the remainder of 2015? With gold prices suddenly more volatile than they’ve been in a decade, it’s a tricky market to predict moving forward. But here are a few ideas about the commodity for the year ahead.

For starters, there are signs of continued improvement for the U.S. dollar ahead, and strength of the dollar has often served as an ominous sign for gold prices. In fact, since the aforementioned gold highs in 2011, there’s been a relatively steady rise in the value of the dollar that coincides fairly closely with the drop-off in gold. We recently wrote an article on bearish outlooks for the,EUR/USD and some of the same trends involved in this analysis can have a similar impact on the gold market. Basically, as confidence in the dollar increases, the need for currency traders or those looking for financial hedges to invest in the euro, or in gold, decreases.

That’s not to say that there’s only bad news for the gold price outlook. While the dollar tends to play a significant role in what happens with gold, it is far from the only factor with influence. Another major factor is demand in the Far East, where India and China have historically been among the highest volume of consumers for the precious metal. And at the moment, this region is providing something of a mixed outlook. While demand in both India and China dropped off in 2014, a recent analysis posted to suggested a divide moving forward. Currently, India sits as the world’s biggest gold consumer, with demand looking healthy moving forward. Meanwhile, various issues in China, including anti-corruption policies weakening the market, have contributed to a shrinking demand.

Additional factors matter as well. For example, major world conflicts have often served to strengthen the value of gold due to investors’ search for financial havens. For that reason, ongoing tension between Russia and Ukraine, as well as in the Middle East, still has the potential to boost gold prices should a situation escalate. But ultimately, the reason for uncertain outlooks on the price of gold in 2015 is that the two main factors—worldwide demand and the value of the dollar—are somewhat uncertain themselves. Demand has fluctuated in recent years, and while the dollar appears to be on relatively strong ground, many are hesitant to bet on continued stability.

As long as these influential aspects of the market remain in flux, the price of gold may remain less predictable than we’re used to.

What To Make Of Gold Prices In 2015

Related Articles

What To Make Of Gold Prices In 2015

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email