In the last week, tensions between the United States and North Korea have increased dramatically. The Communist nation is increasingly upset about public statements, often made on Twitter, from the President of the United States. They have issued public warnings that they are not afraid to go to war if necessary. Early trading on Monday, April 17, 2017, had gold prices inching ever closer to $1,300 per Troy ounce.
With prices around $1,287 this morning, $1,300 seems within reach unless factors change.
Gold dipped from a weekend high early in the morning, but has begun to increase again since the opening of domestic markets. Depending on how investors feel about ongoing political tensions, this week could see gold prices continue to climb.
Investors Hedging Bets Due to North Korea Tensions
As often happens during times of political uncertainty, investors are looking for ways to offset the potential risk to financial markets from instability. Political tensions can result in acts of war and economic destabilization. These can have profound impacts on the value of companies, stocks and currencies. Currently, the level of rhetoric coming out of North Korea is enough to put investors off of financial investments and drive up the price of gold.
There are other international factors that could also contribute to increasing gold prices. With discussions for a new market in Myanmar and the recent opening of a futures trading market in Shanghai, there are more opportunities than ever for global gold investing.
This, in turn, leads to increased demand, which can help boost prices in a more long-term manner than shorter-term political issues. With prices trending upward, investors in gold futures need to carefully assess when to buy and when to sell in order to produce the most potential profit.
Fluctuations Benefits Forex Traders
Savvy investors may have snapped up gold when prices dropped early morning on international markets. A quick rebound like the one witnessed today can result in several dollars of profit per ounce in short-term trading. For those who invest in gold futures via an online Forex platform, these kinds of shorter-term trades are simple and potentially profitable. With so much political and economic uncertainty, now could be an ideal time to consider trying out online investing in gold futures from the comfort of your own home or office.
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