# From one Golden Week to another: easyMarkets looks at gold’s rollercoaster 2016 Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2016-09-28 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Gold Prices Surge As US Monetary Policy Uncertainty Looms Meta Description: Could $1,400 per troy ounce be reached in the short term due to US monetary policy uncertainty? Expert insights provided by Sun Yu of easyMarkets. URL: https://financedigest.com/from-one-golden-week-to-another-easymarkets-looks-at-golds-rollercoaster-2016html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/drawing-arrow-up-graphs-on-1736844486059-compressed.jpg) - **Gold futures up by 5.7% since China’s February 2016 Golden Week** - **Highs of $1,400 per troy ounce possible in the short term** - **US monetary policy uncertainty having notable impact on gold prices at present** National Day Golden Week will see workers across [China](https://www.financedigest.com/oil-hits-3-week-high-as-china-eases-covid-curbs.html "Oil hits 3-week high as China eases COVID curbs") down tools for a week of celebration. On 1 October, [National Day](https://www.financedigest.com/new-zealand-marks-queen-elizabeths-passing-on-national-day-of-mourning.html "New Zealand marks Queen Elizabeth’s passing on national day of mourning") celebrates the founding of the People’s Republic of China, followed by seven days of holiday that many spend travelling, feasting and enjoying time with family members. Sun Yu China celebrates two Golden [Weeks every year](https://www.financedigest.com/u-s-labor-market-powers-ahead-as-weekly-jobless-claims-fall-layoffs-hit-24-year-low.html "U.S. labor market powers ahead as weekly jobless claims fall, layoffs hit 24-year low"), with Chinese Lunar New Year Golden Week having taken place from 9-13 February 2016. With a focus on all things gold, **Sun Yu**, Dealing Room Manager at pioneering forex and CFD broker **[easyMarkets](http://r20.rs6.net/tn.jsp?f=001nDxWV82suRm7M0qSquiYqxsmjaHeKJA8-1-6vRCuP8qC29zQJ0MHfcBSUesOAz2KVjqqAS-cHIybkarmLN659kaX9aVfaaYBplRXadbBu5mNwIpagELZZ1b_d_llqORpTe6JRE9Bqge2pzKjfsybQtQTpQaVgGWqCmShGweE6MNIebP1rTXqaQ==&c=uQM4mD0ic4AvhkOuwVYbJxxnQhWrv3ZSxVYO6ebnuMaAXIyFvz5Jpw==&ch=fcgvqP9jBppnQ7AVbE8C44WuF5AIFerBQPdyf7xZYp3myGIxcMFFIw==)**, has been considering the journey that gold prices have been on between that last Golden Week and this one. He explains, It has been a rollercoaster [year for gold prices](https://www.financedigest.com/suedzucker-expects-to-raise-its-sugar-prices-again-next-year.html "Suedzucker expects to raise its sugar prices again next year"). Since the last Golden Week holiday February 9-13, the yellow metal has entered into bull [market territory and set](https://www.financedigest.com/the-diabetic-foot-ulcer-therapeutics-market-is-all-set-to-be-in-the-driver.html "The Diabetic Foot Ulcer Therapeutics Market is all set to be in the driver") fresh multi-year highs. But the rally has been anything but steady. As we approach the second Golden Week holiday of the year, gold prices are on a [downward spiral](https://www.financedigest.com/britains-bleak-outlook-sets-sterling-to-downward-spiral.html "Britain’s bleak outlook sets sterling to downward spiral") amid confusion about US monetary policy. Gold [futures surged](https://www.financedigest.com/air-separation-plant-market-to-register-5-cagr-driven-by-surging-demand-for-nitrogen-gas-within-food-beverage-sector-future-market-insights.html "Air Separation Plant Market to Register 5% CAGR Driven by Surging Demand for Nitrogen Gas within Food & Beverage Sector: Future Market Insights") during the February Golden Week, adding 3.3% to $1,239.40 a troy ounce. By 16 September, the futures price was up another 5.7% to $1,310.20. Several [key developments](https://www.financedigest.com/automotive-actuator-market-key-manufacturers-development-trends-and-competitive-analysis-2028.html "Automotive Actuator Market Key Manufacturers, Development Trends and Competitive Analysis 2028") occurred in between, not the least of which was Britain’s shocking decision to leave the European Union (EU) on 23 June 2016. The vote triggered the biggest [stock market](https://www.financedigest.com/the-bouillon-stock-cubes-market-to-fathom-the-depth-of-innovation.html "The Bouillon Stock Cubes Market To Fathom The Depth Of Innovation") selloff in history, wiping out more than $3 trillion from the global exchanges in just two days. Investors quickly entered into risk-off mode, sending gold prices to 27-month highs. Prices would continue higher over the [next several weeks](https://www.financedigest.com/hungary-cenbank-seen-hiking-100-bps-to-11-75-next-week-as-inflation-surges.html "Hungary cenbank seen hiking 100 bps to 11.75% next week as inflation surges"), reaching a new high of $1,372.60 on 2 August. That was the [highest settlement since March](https://www.financedigest.com/russian-inflation-accelerates-to-7-61-m-m-in-march-highest-since-1999.html "Russian inflation accelerates to 7.61% m/m in March, highest since 1999") 2014. Gold prices are now down nearly 5% from their August highs, but expectations are high that they will ascent to new heights quite quickly, perhaps even reaching $1,400 over the short term. Much of this will depend on US [monetary policy](https://www.financedigest.com/asian-economic-powers-warn-of-risks-from-war-monetary-policy-normalisation.html "Asian economic powers warn of risks from war, monetary policy normalisation"). It’s a coin toss whether the Federal Reserve will raise [interest rates](https://www.financedigest.com/czech-interest-rates-already-at-high-level-central-bank-governor-says.html "Czech interest rates already at high level, central bank governor says") this year, according to the Fed Fund futures prices. The Fed is widely expected to continue hiking interest rates over the [medium term](https://www.financedigest.com/ab-inbev-aims-for-core-profit-growth-of-4-to-8-over-medium-term.html "AB InBev aims for core profit growth of 4% to 8% over medium term"), despite the vast majority of other major central banks working to ease monetary policy. [Higher interest rates](https://www.financedigest.com/short-bowel-syndrome-market-higher-growth-rate-forecast-2020-2030.html "Short Bowel Syndrome Market Higher Growth Rate & Forecast 2020 – 2030") might be a boon to the US dollar, but at the expense of greenback-denominated commodities such as gold. easyMarkets’ Sun Yu continues, Gold is one commodity to watch carefully as National [Day Golden Week](https://www.financedigest.com/transitioning-into-a-4-day-week.html "Transitioning into a 4 day week") approaches. We’ve seen a price increase of 25.22% since [January and there’s certainly scope for further rises](https://www.financedigest.com/uk-new-car-sales-rise-in-january-full-year-sales-to-top-last-year-smmt.html "UK new car sales rise in January, full-year sales to top last year – SMMT"), but sensitivities to the activities – including the predicted activities – of the Fed will remain influential in the short-term. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---