Gold often fluctuates in price depending on the strength of various world currencies. At the end of this week, thanks to a stronger dollar, gold prices have dropped. They are recovering, however, in part, due to overnight trading by Asian investors who are uncertain about the dollar’s gains and the stability of the American economy and investment market.
Today, after dropping substantially yesterday, Thursday the 26th of January, 2017, gold is rebounding slowly. While it is trading under $1,200 an ounce again, the price has already climbed back up from yesterday’s low.
Stronger Dollar Pushes Gold Prices Lower
Earlier this week, gold futures were trading at $1,219.59 per Troy ounce. At the end of trading on Thursday, prices had dropped back to $1,182 per ounce. It has already recovered some of that loss, climbing back up to $1,188 per ounce before mid-day on Friday.
This drop and rally are the result of a confluence of events. First, President Donald Trump signed several orders that indicate there will be economic movement in several areas in the upcoming months. This has helped create a stronger dollar. That, combined with stock increases, drove the price of gold lower earlier this week.
However, late Thursday and early Friday brought hints that many people in Mexico are engaging in a boycott of the United States and their trading partners. This has fueled the flames of economic anxiety in Asian investors, who are looking to gold as a more stable option when compared with the United States dollar and stock market. It is likely that gold prices and the value of the U.S. dollar will continue to fluctuate substantially in the upcoming weeks, making right now an ideal time to consider trading gold futures on an online Forex platform.
Capitalize on Gold Fluctuations with Online Forex Trading
With each day’s changes in price, those who trade in gold futures stand to make money. Whether the price is dropping due to a stronger dollar value or increasing as stocks take a tumble, those changes allow for potential profit thanks to short-term trading. Investing in gold futures via an online Forex platform allows you to capitalize on those changes and potentially profit from them. Right now is a great time to try your hand at trading via an online Forex platform.
