Last week proved to be an active week for gold. We saw the price of gold start off on Monday at $1131 an ounce on and eventually climb up to $1146.40 on Friday.  Within the week gold surpassed record highs numerous times and even sustained its momentum as the dollar index DYX increased.

Healthy Financial Habits accurately predicted that the price of gold would reach $1,150 last week. This week we believe that the outlook for gold may lack some luster.  With nearly a 3% increase in a single week combined with the dollar index on the rise, the market is surely headed for a correction.

We are predicting that the week of November 23^rd will start off with a decline in the price of gold. The dollar index, a measurement of United States currency, is headed in the upward direction. Generally, as the value of the dollar increases gold usually reacts by moving in the opposite direction.

The price of gold will become erratic and eventually level off towards the end the week closing at $1139 per ounce at a loss of $7.00 an ounce.

One unknown factor that will adversely affect the price of gold is the current holding of 200 metric tons of gold from the International Monetary Fund.  As you may recall, India purchased 200 of the 400 metric tons of gold from the IMF at the beginning of November. If another central bank buys a large portion of the remaining 200 metric tons from the IMF the price of gold will be headed for a sharp incline.  It is currently unknown what the IMF plans to do with the remaining supply.

Check back with Healthy Financial Habits every Monday morning for your weekly gold price predictions. Here you will find current news, information and investment strategies that will assist you in making financial decisions. It is important to remember that consulting with a quality financial advisor is always recommended prior to making personal financial decisions.

Author: Greg Jackson