weak equities

Weak Equity Markets Push Gold Back Up

A week ago, gold markets were in a bit of a slump. Although the dollar didn’t rally as strongly as some might expect on the heels of a prime rate increase, the Federal Reserve’s announcement did hit gold hard. Prices dropped down to the lowest levels in weeks but have since recovered quite quickly.

As of the beginning of trading on Thursday, March 23, 2017, gold futures for April delivery are trading at $1,254 per troy ounce. That price is the result of five straight days of gains, which marks a rapid recovery from the Federal Reserve’s announcement.

The gold market is often stronger when other forms of investment seem volatile or high risk. In times of economic uncertainty, gold and other precious metals are popular investments. When stocks and other investments are growing rapidly, however, gold tends to stagnate or even decrease in price.

Weak Equity Markets Push Investors to Less Volatile Options

Part of the reason that gold has rallied so quickly is investor nervousness about less secure forms of investment. Equity markets took a sharp blow this week.

Tuesday’s trading marked the lowest prices for equities since September of 2016. This impact was seen across the investing world as the Nasdaq, S&P 500 and Dow Jones Industrial Average all took steep blows. This is likely, in part, due to uncertainty about the impact of pending health care acts. Several pieces of legislation could have dramatic impacts on financial and medical stocks, the ultimate result of which has yet to be seen.

Currently, gold and other metal markets are benefiting from this uncertainty.

Market analysts are unsure of how future prices will shift. Will equities and financial stocks rebound, dropping gold prices lower? Will the selloff continue, resulting in increased value of precious metals? Whichever way the market trends in the mid-term, short-term traders can easily capitalize on regular price fluctuations for gold.

Online Forex Platforms Are Ideal for Short-Term Gold Trading

When you want to capitalize on your knowledge of financial trends, investing in gold futures via an online Forex platform is a great idea. Not only can you control the buying and selling of more gold futures than physical gold, you can buy and sell from the comfort of your own home.

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