LONDON--(BUSINESS WIRE)--OptionRally is expected to release its annual expectations for the gold sector for 2016 to its investors in the coming month. The report presents a negative outlook for gold prices, suggesting that investors should go short on gold at this point.
According to Ron Kremer, Senior Broker at OptionRally and one of the report’s writers, gold prices are in a steep downtrend and will continue to plunge, mostly because of the dollar’s rally and China’s market crash.
“The dollar has seen a significant rise in value in response to November’s positive U.S. jobs report. This alone is expected to send the precious metal’s price down,” says Kremer.
“Regarding China, it is one of the largest gold consumers in the world and has the most gold merchants. A slowdown in China’s economy contributes directly to a slowdown in its gold consumption and therefore in global gold production,” continues Kremer.
“Europe is also a significant factor in gold’s anticipated plunge. Both China’s and Europe’s market slowdowns will channel money to the U.S. markets. This, together with the latest strong U.S. jobs report, will send the dollar’s value way up - and we all know that there’s an inverse relationship between the price of gold and the value of the dollar,” explains Kremer. “Other than that, gold has been in a continual downtrend for the past two years and according to a number of respected market analysts, will continue to decline.”
Kremer, who has been trading professionally for the past seven years, provides personal broker services to over 150 clients in more than 15 countries.
*This item has been prepared solely for information purposes, and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy.