At the beginning of this past week, the U.S. Dollar Index reacted negatively to the inauguration of Donald Trump. This reaction was good news for gold futures pricing, but the good news didn’t last long. Gold futures pricing hit a high on Tuesday, Jan. 24 when gold reached $1220.10 per ounce. From there, it was bad news for the market as gold had three consecutive days of loss.
Uncertainty of U.S. Economy
The U.S. economy is shaky right now because the country is still trying to adjust to a new president. President Trump has issued a frenzy of executive orders and executive memorandums in his first full week as President of the United States. The ban on Muslims entering the country was later the subject of a temporary stay but the highly controversial Dakota Access Pipeline and the Keystone XL Pipeline have been given the go-ahead. Economic shakiness is keeping investors on their toes because when the dollar fluctuates, so does the price of gold. A strengthening U.S. economy means that the price of gold will go down.
The Horizon for Gold Futures
Overall, gold futures ended 1.4 percent down this past week. The markets aren’t expected to make any large gains or losses this coming week. This is partially because Chinese markets are closed until Friday because the country is celebrating the Chinese New Year.
People who are interested in investing in oil futures must think carefully about when to make this move. Keeping an eye on how the U.S. economy fluctuates now and in the future is crucial. You must buy when the price of gold is at a low so you can increase potential profit if you hang on until it hits a high in the future.
How to Trade Gold Online
The Price of gold is constantly on the move. Take advantage of the daily price changes in gold with an online trading account. Some brokers offer bonuses of up to 30% on your first deposit (Terms and conditions apply). Open Gold Trading Account Here
The broker trading platform will also provide you with numerous charting tools and the ability to trade other commodities and currencies in addition to gold CFD’s. You might also want to begin trading with a demo account before attempting to risk any of your own money. That way you can practice trading with virtual money on the demo platform first.