After a week of improving performance, gold prices dropped on Thursday, Jan. 19, 2017, thanks to a stronger dollar. Just prior to noon on Friday, Jan. 20, gold futures for February delivery are trading at roughly $1,203, up $3 from the low point on Thursday. While speculation abounds about the impact of Donald Trump’s inauguration on the markets, unless there is a dramatic turn of events today, the markets likely won’t reflect the change in administration until next week.
Stronger Dollar Trading Leads to Lower Gold Prices
The increase of the value of the dollar is attributed, in no small part, to actions (or inaction) from major financial institutions. The chief of the Federal Reserve made it clear that she hopes for another rate increase for the United States prime rate in the near term. The European Central Bank, conversely, took the opposite approach. They indicated they will stay the course on rates and bond buying for the near future. Both of these announcements sent ripples through the investment community. As the dollar strengthened, gold futures took a dip after a week of gains.
While investors are nervous about gold’s price slip, the fact remains that prices are overall higher than what was predicted for early 2017. As recently as two weeks ago, market analysts were saying the gold market couldn’t support prices above $1,200. Many hope to see sustained growth in gold prices in the near future.
Trading Gold Online Is a Great Means to Monetize Market Fluctuations
Because the price of gold can be somewhat volatile, fluctuating on any given day and throughout each week of trading, regardless of whether it is trending up or down, investors can capitalize on those changes. By investing in gold futures via an online Forex trading platform, investors can easily engage in short-term trading and investing of gold futures from their own computer or mobile device. One of the many benefits of Forex trading is the ability to leverage your investment, meaning you can trade more gold futures than you could physical gold bullion for the same amount of capital.
Leveraging your investment gives you the power to control the trading over more gold, which also creates potential for income if you buy when prices go low and sell when they are higher. If you are interested in the potential for financial gains through investing in gold futures, there’s no better time to get started.
How to Trade Gold?
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