After furious trading and rapid gains last week, gold is settling back around the price it held before soaring. As of mid-day on Wednesday, April 25, 2017, gold was selling for around $1,268 per Troy ounce. This price is down substantially from the highs of last week, when the price was hovering around the $1,300 per ounce mark.
Investors who bought when gold prices were peaking are likely seeing losses, but that doesn’t mean gold is a poor investment overall. In fact, with prices lower but likely to rebound according to many analysts, now may be a great time to buy gold for future profit.
Short-term trading always carries some risk for investors. Markets can behave in unpredictable ways after geopolitical events. Gold is often considered a safe investment when stocks and currencies are struggling. That means that when the dollar’s value goes up or investing in general is going through a boom period, gold prices can seem weak. Short-term traders with market knowledge can continue to profit, even during temporary pricing drops, as gold prices tend to fluctuate on any given day and throughout the week, regardless of how it’s trending overall.
Downward Trend Could Represent a Buying Opportunity
The best way to make money on short-term investments is to buy when prices are low and sell when they surpass your initial investment. Selling too early, however, could limit your profits. It all depends on where the market is headed. For some investors, a $30 per ounce drop in the price of gold over the course of a week represents an ideal time to buy up gold futures. They can then sell those futures when the price begins to move upward again.
With gold prices down to a seven-week low, chances for a future increase are solid. Currently, prices are reacting to a number of things, including polls about the upcoming French presidential election.
Gold markets and most investment markets can react suddenly to geopolitical events, including elections, interest rate adjustments and even severe weather. When gold prices contract, wise investment decisions are required. Similarly, when prices increase, it is important to know when to buy and when to sell. If you are interested in trading gold futures, using an online Forex platform is often the most convenient, affordable and fast way to do so.
