Any time you look at the gold market from an investing perspective, you need to see what has happened in the past, where the current market is and what the future projections are. Whether you’re an experienced trader or are just jumping into the market for the first time, this information is critical to your success. The market constantly fluctuates, but right now we are looking at one of the largest gold surpluses in years.
Where Does Gold Stand Now?
As of today, gold is trading at about $1,270 per ounce. As recently as July 2016, it eclipsed the $1,300 per ounce level, which was the highest it had been in a couple years. The reason for the drop in price is due to a surplus of about 250 tonnes. It has been more than a decade since the gold market has seen a quarterly surplus this large.
Two Largest Markets are Down Significantly
China and India are the two largest markets, but they have seen a significant drop in jewelry consumption. This is despite the fact that there is still a high demand for gold ETFs in the West. Both countries are headed toward lows that they haven’t seen in several years. Investors have pulled back slightly because of this, but the near future still looks good for trading gold online.
Stabilized Prices Will Lead to Support Gold Pricing
Despite the large gold surplus and the plummeting price of gold, experts believe it is going to bounce back nicely. The current projections say the price of gold won’t fall below $1,240 per ounce, but it could get up to $1,420 per ounce over the next year. This would be the highest price for gold in more than five years and would be one of the top-three highest prices in history.
Now is the time to get started if you’ve ever wanted to trade gold online. With the physical demand of gold being low in Asia, experts predict gold prices to be supported in the near future. Other financial institutions in the west are also beginning to recommend gold purchases, so the ETF demand will remain at solid levels.
Whether you’re an expert in the gold market, or just want to learn more about trading gold online, be sure to bookmark our website or follow us on Facebook. Our goal is to keep you well informed with the latest trends and events affecting the price of gold.
