On Tuesday, April 4, 2017, gold prices were trading at $1,258 per ounce toward the end of daily trading. While many experts had expected gold prices to soften once it reached the price of $1,250 per ounce, this prediction has not come to fruition.
Instead resulting in large part from an act of terrorism in Russia, gold prices have gotten even stronger. Investors and financial analysts are not able to predict these kinds of unforeseen events, so it is impossible to prepare for them. Those who were buying gold as the price weakened, however, now stand to profit heavily thanks to the explosion that tore through St. Petersburg yesterday.
Terrorism Often Creates Economic Destabilization
When acts of terror hit industrialized nations, the markets react strongly. Typically, stocks and other common investments will decline sharply after a terrorist act. Currencies may also weaken. This tends to lead investors to flood into what are considered safer investments: precious metals, especially gold.
This week’s tragedy in Russia is no exception. Following an explosion in St. Petersburg on Monday, gold prices have strengthened. Investors are worried about the destabilizing effects of terrorism. These events, which don’t directly impact markets, impact consumers and business decisions.
Many companies may hold off on expansions immediately after a major act of terrorism. Consumer confidence also typically takes a hit. Combine these factors with a weaker dollar, and you have a recipe for a sudden surge in gold prices on the global trading markets, as seen earlier today. In response to the explosion and the rush to invest in gold, prices were as high as $1,263 per Troy ounce on Tuesday, creating the potential for profit for those who purchase gold as it slumped on Monday.
Now Is a Great Time to Invest in Gold Online
While the effects of this explosion will soon dissipate, gold markets will continue to fluctuate due to economic uncertainty, changes in currency valuation and even natural disasters. Investors who understand the movements of the market may want to consider trading gold futures via an online Forex platform. Doing so may allow savvy investors to profit off of sudden spikes in value, like what was seen earlier today. Gold provides daily opportunities for short-term trading profits for those who wish to buy and sell gold futures online.
