, Columnist
Gold's Headwinds Are Getting Stronger
Once the Republican tax cuts are signed into law, there is likely to be more upside for equities and further downside risk for the precious metal.
Gold is losing its shine.
Photographer: Arne DedertGold prices have been falling, closing below multiple critical levels. A number of factors are conspiring against the precious metal, and they are likely to worsen: strong equity markets, the prospects of short-term dollar strength and the cryptocurrency feeding frenzy.
After trending higher for much of the year, gold hit a ceiling in early September as U.S. stock prices powered ahead on rising optimism for imminent tax cuts. The revaluation trade supporting equities that is based on expected future lower corporate tax rates appears justified. Once those cuts are signed into law, there is likely to be more upside for equities and further downside risk for gold.