After weeks of strong performance endcapped with a slump, gold has remained strong, holding a price near $1,250 per ounce for future delivery. While trading early on Wednesday, March 29, 2017, was within that range, with prices hovering around $1,248 per ounce, it was still down from prices earlier in the week.
The dollar itself has strengthened its performance on the currency market in the last week, which undoubtedly contributed to the decline of gold prices. Generally speaking, a stronger dollar drives down demand and thus prices for gold. When the dollar is weak, gold prices generally rise.
Many Factors Contribute to Stronger Dollar
While it is impossible to determine every single factor that contributed to the strengthening of the dollar this week, there are certain trends that undoubtedly impacted it. Earlier in the week, it was disclosed that the March Consumer Confidence Index had increased to 125.6, which is almost ten points higher than it was in February. That Index score is actually the highest it has been since December 2000, which is an indicator of strong economic performance to come.
Many market analysts, however, are encouraging investors to continue hedging their financial bets with gold and other precious metals. There continues to be ongoing economic uncertainty, despite the fact that consumer confidence and the dollar are stronger now than they were last month.
Regardless of whether gold sees a price increase or just stays in the same price range, right now is an ideal time to consider short-term trading of gold futures online. With the financial and economic uncertainty that is driving many investment decisions currently, gold will undoubtedly continue to fluctuate in price, creating a variety of opportunities for profit if investors make sound decisions.
Trading Gold via an Online Forex Platform Is Easy and Convenient
For those who have never invested in gold futures, it may seem like a complex process. In reality, trading gold futures online can be done from the comfort of your home or office. By creating a Forex account, you can control the buying and selling of gold futures quickly and easily.
Of course, profiting from this endeavor requires intelligent trading: buying gold when prices are lower and selling when they increase. Thanks to the ability to leverage your liquid capital investment when trading online, you can actually control more gold futures than you could physical gold, increasing the profit potential.
