Market analysts at the end of 2016 predicted that gold prices only had long-term support for prices no higher than $1,200 per ounce. So far, the gold futures market in 2017 has been pushing back against that assertion, holding prices over $1,200 for many days running.
While the dollar has been fluctuating in valuation, gold prices have been following suit. Even with a stronger dollar earlier this week, however, gold prices remained over that $1,200 per ounce benchmark. Now, on Thursday, Feb. 16, 2017, gold prices are strengthening again thanks to a weaker performance by the dollar.
Weaker Dollar Values Typically Push Gold Up
Many investors are aware that gold prices and other precious metals tend to move in an inverse wave pattern with the price or valuation of the dollar. A weaker dollar generally pushes gold prices up. A stronger dollar results in lower prices for gold. This comes, in part, because investors typically move to hedge their losses in currency investments with longer-trending investments, such as gold. Gold prices have remained higher and relatively stable thanks to international uncertainty about the future of trade agreements, inflation, and United States economic policy.
Of course, given the number of daily and weekly fluctuations, gold investments aren’t just for those with long-term intentions. Investing in gold in the short term can be quite lucrative, if you buy low and sell high. Monitoring trends on the currency market as well as political activity is the best way to maximize your potential for profit when trading gold futures online.
An Online Forex Trading Platform Is the Ideal Means of Capitalizing on Changes
If you haven’t already tried it, trading gold futures on an online Forex platform is easy. It can even be fun! You can leverage your liquid capital investment to control the buying and selling of much more gold than you could purchase if you were buying bullion or other forms of physical gold.
If you are hoping to capitalize on the fluctuations in gold prices that occur on a daily and weekly basis, there’s never been a more promising time to try investing via an online Forex platform. The longer you wait, the more potential profit you’re missing out on.
How to Trade Gold?
Take advantage of the daily changes in the price of gold. Start trading gold today by opening a trading account with easyMarkets and get up to $2000 bonus*. As an industry first, they have also launched a unique deal cancellation tool as a way to manage your risk on any bad trades. By selecting dealCancellation on the trading platform whenever you make a trade, you can cancel your losing trade within 60 minutes and get your money back. *Terms and Conditions Apply
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