Gold Price Dips-Great Time to Buy Gold?

In the last few weeks, the price of gold has gone down by a couple of dollars per ounce. Investors are not oblivious of this and as the gold price keeps declining, there is a reason to think the future of the yellow metal in the coming months will definitely change.
Federal Reserve and economic data
The United States joblessness went down a couple of points as retail sales have gone up and there is every reason the trend could continue getting better. It is a positive move for the economy and a good indicator the Federal Reserve could be tapering very soon. The economic policy of the Federal Reserve is buying mortgage-backed securities and bonds every month worth about 85 billion dollars to help ensure the interest rates does not go up at the same time stimulating job growth. Economic data is what determines how the market will behave and as the trend seems to change, lots of policy makers are willing to try tapering. In such a time, gold comes in as a cushion against economic uncertainty. Thus, if reports show some positive data, gold will also be affected in a way. Once tapering takes place there will be a significant change in gold investment.
Positive points for the future
Lots of pundits believe the early months of 2014 will see a lot of change in the price of gold. If tapering will ever occur, gold will appear as one of the safest havens. Nonetheless, there have been a lot of things happening, especially with every New Year and the most important thing for investors who want to make some money quickly from gold is to hold on for some time. Currently, there are no gigantic triggers capable of driving prices up. This was seen in the last couple of months when gold even dipped by 9.8 percent across the United States since the yellow metal seems to have been shunned abroad. Foreign currencies appreciated against the dollar while the international prices of gold also dipped by 7.5 %.
While there might be lower prices for the yellow metal, investors indicate it is important to take some time and refrain from buying yet; the price could come down further in the coming weeks. Internal prices of gold, foreign exchange rate and the customs duty increment of 10 percent have had an effect on the price of domestic gold in the United States. Nonetheless, the gold prices are not oscillating a lot and most of the foreign currencies, especially the Indian rupee, and gold prices across the world have decreased.
Gold losing to other investments
The domestic markets are short in gold bars as a result of the curb on imports and a number of gold saving schemes are not accepting ETFs and gold scheme investments for now. Fixed income items’ interest rates have gone up and debt has become very attractive. Fixed incomes are offering a better return on investment after inflation adjustment and the yellow metal has no choice but lose its shine to these fixed income investments.
The US federal tapering in the short term could have some negative effect on gold, subduing the prices for some time. This is why investors are warning against buying gold in a rush since better buying opportunities of gold at a lower cost could increase in the future.
Mark is a financial advisor who occasionally writes articles on his blog. He recently wrote an article on how investing in Gold IRA could be beneficial for the individual who wants a safe investment. He read an article on bestiracompany.com about some of the best gold IRA company to invest.