The Federal Reserve has been threatening to increase the prime rate for the last two years. This week, they finally did just that. Investment markets both global and domestic reacted quickly to the change in the prime rate. Stock prices dipped, as did the trading price of crude oil, immediately following the announcement of a rate hike equalling a quarter of a percent. While gold typically follows an inverse price pattern when compared with stocks and the strength of the dollar, gold prices did not immediately rally. However, small increases have been noticed.
Gold Markets Have Been Down – Will Rate Hike Provide a Boost?
Gold has been bearish recently, with prices dropping below $1200 and continuing to dwindle. However, when stock prices began to drop recently, gold prices finally began to rally. While gold is currently fluctuating, it remains very close to a 10.5 month low. On Friday, Dec. 16, 2016, gold futures were trading at $1,135.90 per Troy ounce. This is an increase of a half percent, following a drop of nearly three percent the previous day. Overall, this week will likely close out as the sixth consecutive week where gold prices have dropped.
While some might be nervous about investing in gold when the dollar is strong, now could be a great time to begin trading gold online. This allows you to take advantage of fluctuating prices by buying and selling gold as a short-term investment.
While, overall, gold has been trending downward, it may go up or down a few points in any given day. These changes present an opportunity to buy when prices are lower and sell them quickly when the price trends upward. For those who are able to monitor the market and make good choices about when to buy or sell, now is a great time to invest in gold.
Gold Trading via an Online Forex Platform Lets You Capitalize on Price Fluctuations
Trading on an online Forex platform allows you to trade in gold futures without needing to invest in physical bullion. Additionally, Forex trading allows you to leverage your liquid investment capital, meaning that you can purchase more gold for less money.
Leveraging your capital does mean you could incur a loss, but the potential for profit is also there. If you’re ready to use the fluctuating price of gold to your advantage, now is the time to begin trading on an online Forex platform.
