The last few weeks have seen a dramatic surge in gold prices. As the tensions between the United States and North Korea grow, investors have flocked to gold. Combine that with unrest in Virginia over the weekend, and it seems like a powerful recipe for strong gold prices.
However, a stronger dollar is also exerting pressure on the price of gold. As a result, gold for future delivery declined for the first time in several sessions on Monday. As of early trading on Tuesday, August 15, 2017, gold had dipped to $1,269 per troy ounce, down from a recent high flirting with $1,300 last week. These fluctuations in price make it an ideal time to trade gold futures for short-term profit, due to the potential for substantial gains.
Domestic Stock and the Stronger Dollar Put Pressure on Gold
Trading on Monday shoved off conventional wisdom that international political issues and domestic unrest lead to lower stock prices and higher gold values. Still, market analysts are wondering if gold will continue to rise. Tensions between the United States and North Korea contribute to this outlook, with analysts stating that overt aggression between the two countries could lead to prices as high as $1,400 an ounce for gold in upcoming months.
There is also increasing militaristic rhetoric coming from the White House regarding Venezuela, which could have an impact on the value of gold and domestic trading. For now, however, optimism from the dollar’s boost in strength seems to be pushing back on gold’s recent gains. Only time will tell how the United States economy and stock market fare in the long term under such intense strain.
Online Forex Trading Lets You Profit from These Shifts
If you haven’t tried trading gold online, now could be a great time to start. Prices are subject to regular fluctuations, sometimes to the tune of many dollars in a single day. These changes present an opportunity for savvy investors to buy and sell at a profit. Even when the dollar is stronger and stocks are building their prices up, gold can still present regular changes in price that can result in profit. Trading gold online allows you to quickly and conveniently buy and sell from your own computer, without the lag time experienced when trading physical gold.
