Although gold has taken minor losses this week, overall, the strong prices seen since the beginning of the new year have held. This is due, in no small part, to global investors hedging their risks during a time of real economic uncertainty.
While industry leaders remain optimistic about the potential for deregulation increasing corporate profit margins, many investors are nervous about the current administration’s international policies. This has helped hold gold at over $1,200 an ounce. As of early trading on Thursday, March 2, 2017, future prices for an ounce of gold were around $1,248.
Trump’s Speech Fueled Fears of Economic Uncertainty
On Monday, gold prices soared to a three and a half month high. On Tuesday, the dollar temporarily strengthened and gold prices took a minor dip.
However, economic uncertainty after Trump’s address to Congress on Tuesday helped gold prices recover from their recent loss. Overall, gold prices may be fluctuating but all signs point to continued growth or at least maintenance of a price of over $1,200 per ounce.
Anything, from political issues to terrorism, can impact trading prices and currencies, so the potential for a price change is always just a news update away. The Federal Reserve’s recent inaction has helped strengthen gold prices.
Savvy investors, however, understand how to capitalize on fluctuating gold prices. By buying gold when prices take a dip and then selling those gold futures when the price recovers, investors can make decent short-term profits with minimal risks.
Unlike businesses and stocks, which can become completely devalued if the company crumbles, gold is useful for industrial and jewelry purposes, ensuring there will always be a market for this precious metal. That is why investors tend to flock to precious metals during times of economic uncertainty.
Trading Gold Online Has Never Been Simpler
If you want to trade gold online, you don’t need to purchase physical gold or bullion to capitalize on changing gold prices. In fact, doing so can result in slower trades. Instead, you can invest via an online Forex trading platform. These platforms let you invest in gold futures, meaning you don’t have to physically purchase or trade gold. Instead, you can buy and sell this precious metal from the comfort of your home or office, while leveraging your capital to control more gold futures than you would with physical gold.
