Key Update: Gold Settles below $1,200 per Ounce Again (Part 1 of 3)

Below is our gold price and fundamental analysis. For an in-depth fundamental look at crude oil and related companies, sectors, and drivers, please refer to our Gold ETFs page.

COMEX-traded gold futures for April delivery declined by 1.35% and closed at $1,186.90 per ounce on April 22, 2015. Prices declined because the consensus of the improving US economy could curb the demand for gold. ETFs following the performance of gold like the iShares Gold Trust (IAU) and the SPDR Gold Trust ETF (GLD) also fell by 1.29% and 1.34% in Wednesday’s trade. The Market Vectors Gold Miners ETF (GDX) fell more than 3% at the close of trade.

Gold producers like Alamos Gold (AGI), Sibanye Gold (SBGL), and Harmony Gold (HMY) dragged GDX down in yesterday’s trade. These stocks account for 4.15% of GDX.

The US Dollar Index gained against the basket of currencies on April 23, 2015. The index gained on the consensus of the improving US economy—driven by data on previously owned home sales climbing to the highest level since September 2013. The estimates were reported by the NAR (National Association of Realtors) on Wednesday, April 23, 2015. The appreciating dollar makes gold expensive.

April gold futures’ prices fell for the sixth day in the last ten trading sessions. During the same period, prices increased 0.02% more on the average up days than on the down days. Nickel was the top performer in yesterday’s trade. However, gold had an average performance at the close of trade.

April gold futures’ prices increased by 0.24% YTD (year-to-date)—led by improving demand from China. Gold prices are in a downtrend due to the strong dollar and weak global demand.

Continue to Part 2

Browse this series on Market Realist:

• Part 2 - Chinese and Indian Gold Buying: At the Peak since January 2014
• Part 3 - Will India’s Festival Season Boost the Demand for Gold?