Typically, when the dollar strengthens on the international currency market, commodities that often used to hedge investment risk, such as gold, decline in response. Most times, gold and the value of the dollar move in inverse wave patterns when compared to one another. When the dollar takes a dive, gold tends to gain. When the dollar is stronger, gold tends to depreciate on the investment market.
Right now, however, gold prices are denying that common wisdom by tacking on continuing gains, even with a stronger dollar performance on the currency investment market.
Gold Prices Not Affected by Stronger Dollar
The dollar’s value took a drop last week when the Federal Reserve announced that they would not be increasing the prime rate in the upcoming weeks. International investors, as they are wont to do, flocked to precious metals as a result. Gold prices were climbing toward a 12-week high as a result.
This week, despite the dollar making up for last week’s losses, the price of gold for April delivery continues to soar. Early into trading on Thursday, Feb. 9, 2017, prices were at $1,242 and climbing.
Potential for inflation and global uncertainty about the future are serving to keep gold prices stable and bullish despite recent gains by the dollar.
While some may view this rebound as a short-term trend, others are expecting it to continue for several more weeks or even months as investors acclimate to the volatility that comes with changing international and economic policies in the United Sates. Gold continues to move up and down on any given day of trading. These fluctuations make it an ideal commodity for short-term investing and trading for profits.
Now Is an Ideal Time to Consider Forex Gold Trading
If you haven’t already tried it, now is an ideal time to look into trading gold futures online via a Forex platform. Doing so allows you to quickly and easily control the buying and selling of gold futures from the comfort of your home or mobile device.
Trading on a Forex platform also allows you to leverage your liquid capital invested. You can buy and sell more gold futures on a Forex platform than you could if you were investing in physical gold or bullion. Take advantage of this great time to get started in Forex gold trading.
