Gold continues on a slow decline as it fights against the rising value of the US dollar. With gold fighting a stronger dollar as of September 11, 2014, speculation continues as to whether this precious metal will hold steady or regain ground. With economic and political issues around the world, gold futures aren’t expected to return above 1300 before the end of the year.
When markets first opened on Thursday, gold dropped to its lowest value, at 1245.00, in three months while the US dollar rose to 84.43. With the dollar gaining momentum and enjoying close to a 16 month high, many fear gold may not be able to recover any time soon.
The decline is partially attributed to a recovering US economy and the possibility of the Federal Reserve increasing interest rates. While the most recent new job report was far less than expected, the dollar’s growth has only moderately slowed. However, it’s possible this report could halt rising interest rates in the US.
Another factor is Russia removing troops from Ukraine, easing tensions and the demand for gold. Investors are also paying close attention to how President Obama handles the situation with ISIS which could strongly affect gold fighting a stronger dollar.
Regardless, the higher the dollar climbs, the higher gold becomes for other countries. This makes gold a less appealing investment. The good news is any investors seeking a good time to buy gold have a window of opportunity. As political and economic issues fluctuate, so will the value of gold. Those who invest now could profit later.
Suggested Strategies For A Binary Options Trader
Will gold rise, fall or stay the same? That’s the big question binary options traders are asking themselves. The answer isn’t crystal clear, but by carefully analyzing the news, it becomes far easier to determine your next move.
Currently, there are three major factors to pay attention to. The first is how the Federal Reserve chooses to react to the disappointing job report. If interest rates stay low, the value of the dollar may falter, giving gold room to rise.
The second is the increasing turmoil surrounding the terrorist organization ISIS. With more US troops being sent in to monitor the situation, it’s possible for the situation to escalate. If any full scale attacks are planned, this could decrease the value of the dollar. However, it could also boost jobs if the situation lasts for any real length of time, equaling a better economy.
The final factor is the shaky peace between Ukraine and Russia. Though Russia is pulling out some troops, the country has to remove their presence entirely. The decreasing tension could change at any time. Should conflict begin again, the demand for gold, and of course its value, will rise.
The best advice to a binary options trader is to carefully monitor all three of these factors daily to determine how gold’s price will fluctuate. Even though analysts don’t predict a major decline in the US dollar, any major political changes could alter this prediction. For now, don’t expect any large increases or decreases.