price consolidation

Gold Prices Already Rebounding from Recent Price Consolidation

Gold prices took quite a hit in early trading on Monday, June 26. They then rebounded slightly in trading on Tuesday the 27th, with signs indicating the consolidation may be over for now. Issues with international financial security, as well as increasing geopolitical tensions, could very well push gold prices up in the near future. Savvy investors were expecting a drop in prices following the increase in the prime rate by the Federal Reserve. With the dollar already looking weaker this week, gold prices are likely to increase again in the near future.

For those who invest in gold futures, these kinds of short-term changes are common and unconcerning. Gold is a safe-haven investment, used by those who are concerned with more traditional financial investments, like stocks and bonds. When the market is weak, gold prices tend to increase.

Dollar Value Drop May Have Ended Gold Price Consolidation

After a day of losses, the decline of the value of the United States dollar may have pulled gold out of its downward spiral. Less than a week after the Federal Reserve announced an increase in the prime rate, the U.S. Dollar has already slumped again. Typically, gold prices and the strength of the dollar are inversely proportionate. When the dollar is stronger, demand and prices for gold go down. When the dollar becomes weaker, prices for gold start increasing again. This is largely because investors see gold as a stable place to turn when traditional financial investments seem shaky.

Most investors and market analysts still see gold futures as having somewhere positive to move in upcoming days and weeks. Gold prices will likely recover recent losses. Some even predict that gold could soon break the $1,300 per Troy ounce limit in future trading.

Online Gold Trading Only Requires Short-Term Gains

You may wonder why anyone would want to start trading gold when the price has recently dropped substantially. The reason is simple: Price fluctuations mean potential for profit. For most investors, stocks and shares are held for weeks, months or even years before trading. Gold futures, however, may be traded several times in a single day at a profit each time, if choices are made carefully. Every time the price goes up or down, there is an opportunity to profit off of those fluctuations. Doing so on an online Forex platform means you can easily trade gold on demand from your home or office.

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