You can earn profits through gold trading, taking advantage of both its rising and falling prices
On Friday, Gold prices hit their highest level in two months. This is a great path for gold, which is on its way to hit its highest annual gain since 2010. Political tensions and various concerns about the impact of US interest rate hikes have had a major impact on its recent price rally.
Gold was up by 0.2%, reaching the price of $1302.72 an ounce. In the meantime, US gold futures for February rose about $7.80, at a price of $1305.00 an ounce.
The huge gains of gold come at the same time as the dollar, being backed by gold, is headed towards its worst year since 2003. The greenback’s prices were affected by tensions between the United States and North Korea, as well as the Russian scandal regarding US President Donald Trump’s campaign and last but not least, the continued decline in US inflation.
Because gold prices are paralleled with the value of the dollar, the dollar’s slide to a 3-month low against other major currencies on Friday led gold prices to their highest levels since mid-October, trading at $1.304 an ounce.
However, gold remains vulnerable, and the overall decline as the currency recovers and any gains on gross income will increase the opportunity cost of holding non-interest-bearing gold bars when GDP increases.
The US interest rate three-times hike this year was offset by weakness in the dollar, as the most important indicator of the health of the US economy lays in the dollar and the real GDP. It is true that the Fed has increased interest rates, but the dollar didn’t seem to benefit from this.
In precious metals, the palladium reached its strongest rally this year, rising 56% as concerns about the availability of the metal increased over the years due to a market deficit. Palladium reached its highest level since February 2001 at $1.072. Silver rose by 0.7%, trading at $16.97, while platinum rose 1.2% to $933.90.
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