For the early months of 2017, gold was a go-to investment. With global markets unsure of how a Trump presidency would impact international trade, investors were looking for something more stable and dependable. Gold has always been viewed as a safe haven investment. When stocks or other common investments are losing value or showing signs of imminent price consolidation, investors and analysts often flock to gold, which tends to increase in price when other economic factors turn bearish. Now that markets are experiencing a summer surge, gold prices are taking a hit.
For many investors and analysts, these short-term losses won’t make a major impact. Gold prices always fluctuate, and most investors factor that into their trading decisions. Gold for August delivery was trading at $1,219 per Troy ounce at the open of the markets on July 5, 2017. Signs point to prices remaining consolidated for the near future, but that doesn’t mean there won’t be investment opportunities. Every day, the price of gold will go up and down. Each one of those changes represents potential profits for short-term traders.
Gold Values Tend to Surge When Economic Optimism Is Low
When key factors, like the international strength of domestic currency and the yield on other investment instruments like Treasury Bonds are low, gold prices tend to increase. Now that investors are seeing the strength of the dollar increase, thanks to a boost in the prime rate, gold prices have declined. Some analysts predict that prices for gold could remain lower for the near future, due to a number of different economic factors.
While the United States observed a federal holiday on Tuesday, gold prices around the world were holding steady after dropping substantially on Monday. Early trading on Wednesday, July 5, 2017, makes it clear that gold won’t just bounce right back to the higher trading levels seen before the announcement that the Federal Reserve was about to increase rates.
Low Gold Prices Mean It’s a Great Time to Try Trading Gold
With prices at an eight-week low, having dipped below the 50-day moving average for gold prices, now is a great time to consider investing in gold. Trading gold futures online can help you quickly and easily profit from changes in the price of gold, as long as you buy and sell carefully.
