dubai

Gold Prices Shaky, Interesting News from Dubai

According to the Wall Street Journal, even though gold is up slightly in early trading on Tuesday morning, Dec. 27, 2016, in China, the price of gold has been shaky to say the least. Anything unexpected in the world has the potential to significantly impact gold pricing over the coming weeks. Investors in gold should be prepared to keep an eye on current events so that they have a grasp on how their investment is likely to fare as the market tries to even out and become more predictable.

Gold’s Challenges

One of the main issues with trying to figure out where gold prices are headed is that there are two very different things that affect these prices. One is that gold prices are greatly impacted by the inflation and deflation that occurs around the world. The other is that gold is driven by fear. These often work against each other, so the market stays wobbly until the economic and fear factors stabilize.

If you recall, Brexit and Donald Trump winning the United States election were two events that had an impact on gold that wasn’t predicted. Many thought those events, especially Brexit, would strengthen gold. Instead, it was sent into a tailspin as the world dealt with the impacts of those events.

Gold in Dubai Is Strong

For the first nine months of 2016, gold was one of the top non-oil foreign traded goods in Dubai. It fell behind mobile phones at Dh116 billion. The increase in non-oil foreign traded goods in Dubai is because of the need to increase investments to keep up with the growth of the region. All signs in Dubai point to an investor-friendly area that is trying to keep up with the current needs of businesspeople. Dubai is using gold as one of the tools to strengthen the economy since oil is still in a funk.

Where Is Gold Headed?

Some industry experts are calling for gold to remain bearish for the first half of the year. They are recommending that the forecast be reevaluated in the middle of the year before the projection for the second half of the year is made. This leaves gold traders without any clear indication of how the market might play out, which may be more of a risk than some want to take. For others, the shaky prices and uncertain future are a signal that the risk might pay off well, eventually.

How to Trade Gold?

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