Although the current price of gold now stands at close to $1,400 per ounce, its seems to be slowing down. This causes a bit of short selling by those who are out to make a quick gain. Even the long term holders of gold coins are getting some jitters over the slight fluctuation of gold prices, no thanks to the Feds.
Market Trend Uncertainty
However, this may seem to be the market trend today. Gold prices are quite volatile albeit in small quantum but that is enough to trigger off the panic button on many people, especially the technologically advanced experts who are dependent on the machine to figure out the next step. For instance, a slight price dip in gold was supposed to alleviate fears on the European credit concerns but instead spiked the equity markets quickly; this in turn affected the gold prices further. The Euro rose from this incident taking away the frowns of anxiety on minor investors’ faces. But by midday, the Euro fell again with the equities.
However, gold is still quite stable throughout such stock market fluctuations as the bullion bank has already placed a cap on the gold prices to generate a sell mode. Gold is expected to rise in price with the Euro’s fall.
Keeping a sound mind
It would look like the problems which besiege Europe will be around for some time yet although they may not be uppermost on most traders’ minds. Investors should learn to be more stable minded about the market’s fluctuating conditions since no firm foundations have ever been accounted for them. The only outcome from such market fluctuations is opportunities created for the sound minded to capitalize on the situation through calm analysis.
All eyes are on the gold price movement; all are curious to check if it will go beyond 1,000 Euro. It is very disturbing to note that the Euro is unable to hold steady for a whole day, reflecting the attitude of sellers out to make a fast buck. With such unsteadiness, the Euro will probably end up at 12100 very quickly although that is still higher than the previous figure in 2008.
Current market
The monthly chart is claiming a low support of gold until the Euro moves below 119which will really be a great concern. It is most likely that the 20 day moving average would be exercised since the current 10 day moving average was not sustainable even when on a rise. The index is required to move back close to 487 instead of moving down to 460.
Showing posts with label gold prices. Show all posts
Showing posts with label gold prices. Show all posts
Monday, January 10, 2011
Monday, August 30, 2010
Factors that Affect the Price of Gold
There are many factors that make now a good time to buy gold coins. Only you can determine if it is right for you. The following are factors that affect the price of gold in a positive way normally. Many of these factors are happening right now.
Spikes in interest rates are often followed by increases in gold prices. Higher interest rates work to increase inflation as the cost of borrowing increases which in turns increases the cost of living.
Oil prices and gold prices don't work hand and hand though there has been a correlation throughout the last few decades. As oil prices have risen or dropped dramatically the price of gold has followed in turn.
The health of banks is a leading indicator to the health of the economy. When banks are in trouble or stop lending it adds fear into the markets. This was noticed in the banking crises that saw the failure of Bear Stearns and Lehman Brothers in 2008 where many people turned to gold instead of keeping their money in banks.
Debt crises and loan defaults makes people uneasy about paper money or money tied up in assets that could go to nothing. Physical gold has never had a value of zero and adds security as you personally take possession of it.
Throughout history from different economic conditions gold has been a safe haven to diversify your portfolio and reduce your risk. Current financial uncertainty and the possibility of a double dip recession have gold prices hitting a brand new record in June of 2010.
Spikes in interest rates are often followed by increases in gold prices. Higher interest rates work to increase inflation as the cost of borrowing increases which in turns increases the cost of living.
Oil prices and gold prices don't work hand and hand though there has been a correlation throughout the last few decades. As oil prices have risen or dropped dramatically the price of gold has followed in turn.
The health of banks is a leading indicator to the health of the economy. When banks are in trouble or stop lending it adds fear into the markets. This was noticed in the banking crises that saw the failure of Bear Stearns and Lehman Brothers in 2008 where many people turned to gold instead of keeping their money in banks.
Debt crises and loan defaults makes people uneasy about paper money or money tied up in assets that could go to nothing. Physical gold has never had a value of zero and adds security as you personally take possession of it.
Throughout history from different economic conditions gold has been a safe haven to diversify your portfolio and reduce your risk. Current financial uncertainty and the possibility of a double dip recession have gold prices hitting a brand new record in June of 2010.
Factors that Affect the Price of Gold
There are many factors that make now a good time to buy gold coins. Only you can determine if it is right for you. The following are factors that affect the price of gold in a positive way normally. Many of these factors are happening right now.
Spikes in interest rates are often followed by increases in gold prices. Higher interest rates work to increase inflation as the cost of borrowing increases which in turns increases the cost of living.
Oil prices and gold prices don't work hand and hand though there has been a correlation throughout the last few decades. As oil prices have risen or dropped dramatically the price of gold has followed in turn.
The health of banks is a leading indicator to the health of the economy. When banks are in trouble or stop lending it adds fear into the markets. This was noticed in the banking crises that saw the failure of Bear Stearns and Lehman Brothers in 2008 where many people turned to gold instead of keeping their money in banks.
Debt crises and loan defaults makes people uneasy about paper money or money tied up in assets that could go to nothing. Physical gold has never had a value of zero and adds security as you personally take possession of it.
Throughout history from different economic conditions gold has been a safe haven to diversify your portfolio and reduce your risk. Current financial uncertainty and the possibility of a double dip recession have gold prices hitting a brand new record in June of 2010.
Spikes in interest rates are often followed by increases in gold prices. Higher interest rates work to increase inflation as the cost of borrowing increases which in turns increases the cost of living.
Oil prices and gold prices don't work hand and hand though there has been a correlation throughout the last few decades. As oil prices have risen or dropped dramatically the price of gold has followed in turn.
The health of banks is a leading indicator to the health of the economy. When banks are in trouble or stop lending it adds fear into the markets. This was noticed in the banking crises that saw the failure of Bear Stearns and Lehman Brothers in 2008 where many people turned to gold instead of keeping their money in banks.
Debt crises and loan defaults makes people uneasy about paper money or money tied up in assets that could go to nothing. Physical gold has never had a value of zero and adds security as you personally take possession of it.
Throughout history from different economic conditions gold has been a safe haven to diversify your portfolio and reduce your risk. Current financial uncertainty and the possibility of a double dip recession have gold prices hitting a brand new record in June of 2010.
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