Strangely, when asking others what the gold price did in 2017, most have said it went down. Actually it went up, only a little but it ended the year better than where it started.
Gold started 2017 at £953 and ended 2017 at £964.
The price of gold spent the whole of February to April well above £953, reaching a high of 1025. In May the price spent a week correcting at back around the £950 mark, before rising again to create another mountain on the price chart over the next two months, again breaching the £1000 resistance at £1001.31 on 9th June.
Then, once again, the price spent a short two weeks in mid July correcting once again down to around the £950 mark before – you’ve guessed it – rising again into a mountain shape on the price graph. This time the Gold price hit its year high of £1030 on 4th September.
Maybe we feel the price dropped because the only period of 2017 it dipped below the £950 resistance was actually very recently, which we tend to remember more. For the first three weeks in December the Gold price dropped below £950 to briefly touch a year low of £928 on 8th December.
So, in review, we have three mountain tops in April, June and September, each time just above the £1000 mark.
It has been a tumultuous year geo-politically and yet interestingly, the Gold price has followed an almost clear cut three monthly repeating cycle up and down the mountains, almost as if the world outside didn’t exist.
The majority of our readers know that the price of Gold does rise in times of extreme political turmoil. And yet, also, that regardless of political changes, many of which are unpredictable, Gold is also a long term store of value, a safe haven of choice over centuries, to protect one’s wealth, slowly and steadily.
Looking Ahead to 2018
Let’s look at what the experts say. Now, I’m also a great believer in not listening to the experts, One of my favourite life time quotes comes from the cousin of an international government leader who was talking to me overseas and said “My mother always told me Don’t listen to the experts. Experts built the Titanic and a novice built the ark.” That being said, Kitco is not so much a commentator’s opinion as a look at the price facts. And, like this blog, they attempt to look forward by looking back:
“Gold does it again after being under selling pressure gold comes back to make a higher high in this recent consolidation pattern. As we have stated many times….consolidation is the toughest pattern to trade until it breaks out one way or the other. The great thing about the metals here is that they have held the support throughout this pattern.”
As I’ve shown above by going into the figures in detail, this statement is very true. At no point last year did Gold trade for more than a few days below it’s starting point of £950.
“The metals markets are setting up for a much bigger move which we believe will be to the upside, however don’t be surprised to see more churning in this range with a couple of false breakouts to either side of the market. We would expect this run here to fail at the monthly highs and pullback, at the same time making a higher low. The higher low should hold making way for gold to break out above the recent highs. We don’t believe that gold will break to the downside at worst we believe the support will hold and longer term we look for higher prices.” (Kitco News)