What Pitfalls Investors Should Expect From Gold In The First Months Of 2017

Gold had an incredibly interesting year in the year 2016. In the beginning of the year, the precious metal skyrocketed as China started a domino effect of global economic hardships. The run upward in the value of the precious metal continued throughout the first half of the year. However, in July, as economic conditions around the world started improving and opportunities started heating up in the market, the value of gold fell. Now, many are saying that the downward trend will continue throughout the first few months of 2017. So, what pitfalls does gold truly face in the first few months of the year? Today, I’ll do my best to answer that question.

Learn How to Exploit the Gold Frenzy!

Improving Sentiment Surrounding Oil

When we think of oil, most of us think about energy. Anything from gasoline to our electric bill. However, the truth is that oil is ultimately ingrained in just about everything. Oil is not only used in energy, it is used in manufacturing of plastics and other important materials. At the end of the day, oil isn’t just a commodity, it’s a signal of economic conditions.

When oil falls in value, it creates a line of reduced income for an incredible amount of companies around the world. Even some entire economies have been built around the commodity. At the moment, sentiment is changing in the sector. With oil production cut agreements from both OPEC and non-OPEC member nations, the overwhelming expectation is that oil will climb in value.

Choose From 10-100oz Pure Silver Trusted Bullion Dealer - Buy Now! silvergoldbull.com

Because oil is fully entrenched in several economies around the world, gains in the value of the commodity will likely lead to further improving economic conditions. At the end of the day, this could prove to be bad news for the safe-haven investment that is gold.

The Donald Trump Market Rally

Donald Trump is now the President of the United States. Leading up to his inauguration, the market rallied on comments that he would changed trade agreements, improve economic conditions, and “Make America Great Again.” Now, it’s time to see if these words materialize into action. If so, the market rally could continue in a big way ahead.

In the first few days of his Presidency, Donald Trump has already signed several agreements surrounding economic drivers like trade agreements, oil pipelines, and more. With him seemingly following through on his promises, investors are likely to continue pushing stock values upward. This is yet another hit to gold from a safe-haven perspective.

There Is A Caveat Here

While things are looking rough for gold for first few months of the year, there is a caveat here, and things may end up going pretty well throughout the entire year. As we can see from the movement in the precious metal over the past year, gold’s value is largely correlated to global economic conditions. While in the short run, things look great economically, this can change quickly.

First and foremost, the market is reacting to the early moves Trump is making as the President of the United States. However, even Trump himself said that the first year is going to be difficult. So, if he follows through on his promises, while economic conditions will improve in the long run, we’re likely to see some hard times through 2017. This could lead to increasing safe haven demand.

Another factor that may benefit gold in the year ahead is the Brexit. As things are going now, it looks like a hard Brexit may be the final result. If this is the case, the economic and market implications among two of the world’s largest economies could be massive, leading to further safe-haven demand.

Final Thoughts

At the end of the day, there’s no denying that the first few months of the year 2017 are likely to shape up to be rough for gold. However, there’s also no denying the fact that there are several catalysts that could drastically change the direction of gold ahead. All in all, this year is likely to be a wild ride for gold!

Choose From 10-100oz Pure Silver Trusted Bullion Dealer - Buy Now! silvergoldbull.com

Receive these articles per e-mail

Subscribe for the free weekly newsletter and receive 3 papers about physical precious metals investing



  • I was paid 104,000 bucks in last twelve months by freelancing from my house a­n­d I did that by wo­rking part-time for several h a day. I’m using a money making opportunity I was introduced by this company i found on-line and I am amazed that i was able to make such great money. It’s beginner friendly and I’m just so thankful that i found it. Here’s what I did… http://timely84.com

  • I’ve made 104 thousand dollars last year by freelancing on-line a­n­d I manage to accomplish that by working in my own time f­­o­­r several hrs each day. I was following a money making model I came across from company that i found online and I am amazed that I was able to earn such great money. It’s newbie-friendly and I’m just so blessed that i learned about it. This is what i do… http://statictab.com/msxjhtx

  • I have profited 104 thousand bucks in last 12 months by working on-line a­­n­­d I did it by w­orking in my own time f­­o­­r few hours /day. I’m using an earning opportunity I came across online and I am thrilled that i made so much money on the side. It’s really beginner-friendly a­n­d I am just so happy that I found out about it. Here’s what I did… http://registrations37.com

  • I was paid 104000 dollars in 2016 by doing an online job a­n­d I manage that by w­o­r­k­i­n­g in my own time for 3 or sometimes more h daily. I used an earning opportunity I came across from this website i found online and I am so amazed that i made so much money on the side. It’s user-friendly a­n­d I’m just so happy that I found out about this. Check out what I did… http://statictab.com/gptmadp

  • elsie.quintanilla

    I was paid 104 thousand dollars previous year by working from my house a­n­d I manage to do it by w­o­r­k­i­n­g part time f­o­r several hrs every day. I used work opportunity I came across from this website i found online and I am so thrilled that i made so much extra income. It’s so beginner-friendly a­n­d I’m just so thankful that i learned about it. Check out what I do… http://statictab.com/6mairvf

  • I’ve earned 104000 bucks in last twelve months by doing an online job a­n­d I was able to do it by work­ing part-time f­­o­­r several h /daily. I’m using a money making opportunity I stumbled upon online and I am amazed that i made so much money on the side. It’s very beginner-friendly a­n­d I’m so thankful that i learned about it. Check out what I did… http://statictab.com/h8vxywm

  • I have earned $104k last year by freelancing from my house and I did that by work­ing part-time f­­o­­r 3 or sometimes more hours each day. I was following a money making opportunity I was introduced by this website i found on-line and I am amazed that i made such great money. It’s so user friendly and I am just so blessed that i found this. Check out what I did… http://statictab.com/dntj48t

  • I have earned 104,000 thousand dollars last year by working online from my house and I manage to accomplish that by w­o­r­k­i­n­g part-time f­o­r few hours a day. I used an earning model I was introduced by this company i found online and I am amazed that i was able to make so much money. It’s user friendly a­n­d I’m just so happy that I found out about this. This is what i did… http://statictab.com/x4biwaa

  • I have earned $104k in last twelve months by working online a­n­d I did that by w­orking part-time f­o­r few h on daily basis. I’m using an earning opportunity I came across from company that i found online and I am so amazed that i made such great money. It’s very newbie-friendly and I am just so blessed that i learned about it. Here’s what I do… http://statictab.com/r2tyhgi