The current state of the gold market and other factors are enticing gold traders in China to increase purchases. Interestingly, the increase is in retail purchases. The Lunar New Year is coming up, as is the wedding season. Both of these factors coinciding with low prices mean that Hong Kong gold sellers are seeing more buyers coming in now.
Gold Is Still Trending Down
Gold is expected to end the year on a low note, partially because of the anticipated interest rate raise by the Federal Reserve. Add the positive equity market and increasing bond yields, and you have a situation that will send gold down a bit more. In fact, gold futures for February are down .09 percent now. The market signals that are used to determine probable future events also signal that there is likely to be more bad news for the price of gold in the near future.
Global Stagnancy Likely to Persist
The gold market in India is fairly stagnant and that seems to be the trend elsewhere. While this is expected in the current market, it signals that there is a chance for new investors to come in and pick up on some of the potential in gold trading, including futures. This isn’t necessarily something that is appropriate for all investors. However, it is a good opportunity for some.
Investors Should Think About the Future
All of this means that gold investors likely shouldn’t expect quick profits since gold isn’t an optimal short-term investment. Once the market begins to shift from the current bear market into more of a bull market, people with holdings in gold are going to find some profits. This is good news for people who are considering gold for their long-term trading portfolio.
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.