weaker dollar

Weaker Dollar Helps Gold Hold on to Recent Gains

Gold has already had a very strong performance in the first month of 2017. All current signs seem to indicate that gold will continue to make gains and hold its price. Market uncertainty, combined with a weaker dollar, have helped to sustain gold prices per Troy ounce that remain above $1,200. Many times, the value of gold moves inversely when compared with the strength of major currencies.

A recent decline in the value of the dollar has helped to push investors into the gold futures market, ensuring that prices per ounce remain steady. Fluctuations continue on a daily basis, but gold is trending up overall.

Weaker Dollar Results from Inactive Fed

This week, the Federal Reserve considered raising the prime rate. Because it affects how much interest financial institutions can charge their consumers, the prime rate often has a powerful impact on the strength of the dollar.

After raising the prime rate recently, the Federal Reserve had been intimating it would raise the rate again at this week’s meeting. When that didn’t happen as anticipated, the inaction on the part of the Federal Reserve led almost immediately to a weaker dollar. While gold has dropped back from its recent 12-week high, its overall price is still surpassing estimates by experts.

The dollar and the strength of the United States economy often have a powerful impact on the value of gold and other precious metals. President Donald Trump’s push for Made in America products could result in either a stronger or weaker dollar as well, depending on how it affects domestic spending, employment and international trade deficits.

It remains to be seen what actual impacts this policy will have on the economy and the investment market. For now, gold is benefiting from all of this economic uncertainty. Its overall price has been on the rise, while daily fluctuations and changes in trading price continue to benefit those who engage in short-term trading of gold futures.

Invest in Gold via an Online Forex Platform

One of the easiest and most cost-effective means of investing in gold futures is to trade gold online via a Forex platform. This allows traders to leverage their financial investment. That, in turn, lets investors control the buying and selling of more gold than they could if they were trading physical gold or bullion.

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