Gold prices ‘to stay in flux’

<p>Gold prices will remain in flux for the foreseeable future.</p>

Gold prices are going to remain "in flux" for the foreseeable future as global markets await the Federal Reserve's announcement of a cut to its quantitative easing programme.

Analysts believe the next few weeks could continue to be rocky for the precious metal, which has lost 27 per cent of its value since March.

Edmund Moy, chief strategist with gold-backed IRA provider Morgan Gold, explained that gold is holding its own at the present time.

"Look for gold prices to be in flux until the Fed, perhaps at their December meeting, gives clearer signals about when they start tapering," Mr Moy told CNBC.

Kelly Teoh, market strategist at IG Markets in Singapore, added that he does not expect the Fed to scale back its quantitative easing programme in December.

She said: "Fed members will always convey the message that they would like to taper but it's a different matter when it comes to pulling the trigger."

The falling value of gold has had a major impact on pawnbrokers such as Albemarle and Gold, which today (December 9th) announced a massive drop in its profits.

Find out about commodities trading and learn CFD strategies at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.