Throughout 2016, the gold market has been predominantly bearish. This is predicted to change in 2017 when gold prices are expected to rally and make an upward climb. But, some analysts have issued bleak forecasts. The stark difference between the optimists and the pessimists make for an interesting gamble on gold.
A Look Back
In 2016, gold prices peaked on July 6. This was when the market price hit $1,364.80 per ounce. Prices then slipped back down to $1,160. This downward slump had some people trying to figure out if the bearish market that has been going on for five years running was truly over. So far, the answer has been “not really, not yet.”
A Look into the Future
The future isn’t really certain when it comes to gold. IG Group Holdings PLC is capping the price of gold at below $1,000 per ounce in the forecast. Others, including UBS Group and Credit Suisse, aren’t holding onto that low expectation. These market players are going all in on gold and saying that the price could climb as high as, or even over, $1,300 per ounce in the new year.
Citigroup Inc. is taking the middle of the road. This investment firm is forecasting that gold prices will remain on the decline for the first part of 2017 before beginning to rally again toward the end of the year.
A Gamble on Gold
People who want to invest in gold should likely consider jumping on board while the prices are still trending low. This could make for a nice return if gold prices do rally in the manner that the optimistic firms are predicting. The strategy could prove to be a bit more of a gamble for some investors who are very cautious and don’t like to take too much of a risk. Thinking about your portfolio and the expectations of how gold will perform might help you to decide if you should go all in now or hold off and see what starts to happen.
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.