Gold prices hit eight-week lows at the beginning of July. At the end of the month, it hit a seven-week high. As of early trading on Tuesday, August 1, gold was trading at $1,269 per Troy ounce. Only a few weeks ago, gold came close to dipping below the $1,200 per ounce mark.
A number of factors, including increasing domestic political concerns, have resulted in an increase in gold prices. Economic information could soon be putting pressure on gold’s price, however. July’s survey of manufacturing data and June’s PCE on inflation could increase investor optimism.
A number of issues contributed to a surge in gold prices, including ongoing media reports of both rapid changes among White House staff and the ongoing Russia investigation. The U.S. dollar has been trending lower due to a potent combination of economic and political uncertainty. The dollar and gold often move in inverse wave patterns, meaning that when the dollar is weak, gold prices go up. When the dollar gets stronger, gold prices often consolidate. With potential pressure in either direction a possibility in upcoming weeks, analysts are struggling to predict gold’s short-term future.
Factors Other Than Political Concerns Also Impact Prices
In addition to optimistic expectations about the upcoming release of critical financial information, there is also a hope that the Federal Reserve will move to increase interest rates. If that happens, interest-bearing investments will become more attractive to investors. After all, interest can be a great source of income when rates are higher. With interest rates low, non-interest bearing investments, like gold, seem like safer bets. Investors are always looking for that perfect balance between the safety of not losing investment capital and high returns. Analysts are trying to determine how prices will trend.
Regardless of how the markets move in a macro sense, there will always be fluctuations throughout any given day and week that can prove profitable for traders.
Online Gold Trading Offers a Chance at Profit
Whenever the price of gold changes, someone is making a profit. Many people watch the market trends and compounding factors closely, allowing them to make trades quickly when rapid changes are afoot. For many people, the easiest way to start trading gold is to do so online via a Forex platform. Online gold trading makes it simple and fast to trade gold from the comfort of your home or office.