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Following Tuesday’s upbeat U.S. home sales data, the probability of a rate hike at the next Fed meeting has increased. Not surprisingly, gold is continuing to edge lower. Prices hit a seven-week low in trading today.

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As the chart above shows, the SPDR Gold Trust (ETF) (GLD) has now fallen more than 4.2% in the last five trading sessions. The big question where will prices find support. Remember that the price rise in the first quarter was driven mainly by investment demand, which rose 122% on a year-over-year basis. Physical demand for gold in the form jewelry actually saw negative growth. There is significant pent up demand in countries like India that could provide support to prices. But the near-term outlook for gold is certainly bearish.