Gold prices have been relatively strong since the beginning of 2017. At several points in recent weeks, gold prices surged, thanks to various economic factors. In mid-April, gold prices got quite close to $1,300 per Troy ounce, although prices have since consolidated. Decreased concern about tensions with North Korea, combined with the looming potential for a prime rate increase from the Federal Reserve, have held gold prices steady but strong in recent days.
Early trading on May 23, 2017, has gold priced at roughly $1,254 per ounce. This is due, in part, to a relatively weak dollar. However, if the Federal Reserve decides to increase the prime rate in the near future, this could strengthen the dollar, which could result in lower gold prices, as the two tend to inversely impact one another.
More Than Rate Hikes Impact Gold Prices
While the international gold market tends to wait anxiously for information about upcoming prime rate increases, domestic financial policy in the United States is not the only factor that impacts worldwide gold prices. It is possible that the terrorist bombing in Manchester will impact investment decisions later today and in the upcoming week. Economic and political instability tend to push investors toward precious metals instead of financial markets. Gold is seen as a more stable investment in times of uncertainty. It’s also possible that recent events won’t have a substantial market impact.
Analysts are predicting that gold prices could increase in the near future, even if there is a short-term downturn in price thanks to an increase in the prime rate.
As with most market analysis, any attempt to predict future market actions is at best an educated guess. A number of potential issues, from inclement weather to war or additional terrorist activity, could impact the price of gold and other commodities, as well as the stability of various currencies around the world.
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Every day, gold prices move up and down in small amounts. Sometimes, those changes are more dramatic. There’s always a potential for profit, if you buy when prices move down and sell when they rebound. Trading gold online via a Forex platform is one of the simplest and most convenient ways to make money from ever-changing gold prices.
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