While early investing on the heels of Donald Trump’s election showed signs of exuberance from industrial and investment sectors, the reality of its impact on the markets remains to be seen. With less than a week in office, Trump’s presidency has seen the dollar slide to a seven-week low.
While it recovered somewhat early on Tuesday, Jan. 24, 2017, gold prices remain strong. Gold and the value of the dollar tend to move in inverse wave patterns, meaning that as the value of the dollar improves, the value of gold declines and vice versa.
The Upcoming Wedding Season Is Also Impacting Gold
Demand for gold is typically stable, with fluctuations occurring as investors hedge their risks with the precious metal during times of currency or stock volatility. One of the exceptions to the standard demand for gold is the wedding season. The spring and summer are historically when most weddings take place. As such, in the months leading up to the wedding season, physical demand for gold increases. This can result in an upward trend in the value of gold futures, as jewelers will soon need gold to make wedding bands and gifts for soon-to-be spouses.
Gold Prices Holding Steady Over $1,200 per Ounce
Experts were expecting gold to remain under $1,200 per ounce for the early part of 2017. However, gold has confounded them all by holding strong at over $1,200 for several successive days of trading. At mid-day on Tuesday, Jan. 24, 2017, gold was valued at $1,214 per ounce. While it will likely dip due to the improved strength of the dollar today, investors should take note that is it outperforming most conservative estimates right now.
These days, some market analysts are predicting that gold could easily surpass $1,250 per Troy ounce. Others believe that a near future retraction of prices to under $1,200 per ounce could also occur.
Whatever the direction of its short-term trends, its daily and weekly fluctuations will continue to present an investment opportunity. Most analysts believe the current value already incorporates the impact of a second pending increase in the prime rate.
Short-Term Gold Trading Can Be Profitable
For those who closely monitor the markets and economic news, short-term trading of gold futures via an online Forex platform can be a wonderful way to generate investment profits. By buying low and selling when prices move upwards, traders can accrue real profits with careful trading. Using an online Forex platform means that trading is quick and convenient for everyone involved.
How to Trade Gold?
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