Gold prices have been up and down recently, partially because of the occurrences around the world. The recent terror attack in London and the way uncertainty in the U.S. is affecting the strength of the United States dollar are huge factors impacting gold prices now. Events in the U.S. and around the world have some questioning the suitability of having the dollar enjoy the top spot as the primary reserve currency.
Fluctuations Across the World
On Friday, March 24, 2017, gold ended the day .09 percent down based on Rs price. One reason for this downward swing was the anxious anticipation of global investors to see if the Obamacare health care program in the United States would get cut short in favor of Trumpcare.
The vote, which was slated for late afternoon Friday, was abruptly canceled when President Trump received word that the measure didn’t have enough supporting votes, even from his own political party.
The precious metal was back up shortly after opening in the Asian markets on Monday, March 27. This came after news that the USD was sliding.
The currency is very close to a two-month low on the U.S. Dollar Index. Weakening of the dollar is making other currencies have a run on becoming the primary trading currency around the world. China is leading the pack in this quest to conquer the reserve currency status.
Terror Acts Have Investors Taking Notice
This past week, the terror attack in London had the entire world watching. This was a stark reminder to investors that the status of any country in the world can change in the blink of an eye. The strength and stability of countries that play a vital role in gold prices and gold market fluctuations can be yanked away by an act of terror. London’s terror attack didn’t have too huge of an impact on the economy of the country, but a similar attack elsewhere might.
Investors are taking notice of world events that are impacting future gold prices. There isn’t any reason to think that gold will have significant fluctuations in the coming months, but anyone considering gold must remember that every economy around the world is in limbo. One small crisis can lead to crumbling economies that will enable investors to benefit from gold holdings.
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