Trading Gold And Silver Futures Contracts
The latest
recovery that have seen in the gold price is thought to be beneficial to
the investors in the gold ETFs that include SPDR gold trust and other
gold trust like iShare Comex Gold Trust. Many are now investing in the
market over the gold expecting it to increase in price further. There
are certain things that are needed to be considered so that you can know
the way the price of gold is going to get fluctuated this year . Each
of these factors needed to be considered in a better way by the
investors and should be researched in really good manner for getting
better results.
FOMC Policy
FOMC decided to taper with its asset purchasing program which leads to the drop in the price of gold in a sharp manner. This dropping we have witnessed with the end of the year. The market reaction that was witnessed during the month of December was really much harsh that QE3 has not pressurized the gold price during the year. FOMC has made the decision of cutting down QE3 by about 10 dollars during its first meeting that was held in this year. QE3 obviously do not have a direct effect over the gold price but it can make the asset purchase – program to cut down on its long run. Even if FOMC is trying to cut down the asset purchasing program, it is estimate that this is going to make a little change to the price of the gold.
Progress in the economy of US
The progress that is seen in the US economy is something that can also influence the price of the gold in a significant manner. The slow progress in the economy of US is not a good sign and this can lead to the steering away of the investors from the investments that they make on the stuffs like silver and gold. This can really make a great difference in the investment side for gold and even silver. The investors usually have a keen observation on the way the USA economy progresses well.
Sentiment in the Market
The equities were having really a great year,but the way this market has started in the year is with a negative impact. Even though FOMC has made decision for continuing with the tapering of QE3 it couldn’t stop the US treasury from falling and this has made negative impact over the equities badly. This has made the people to take decision for investing on the assets that assert less amount of risk, this include the precious metals and also the long term treasuries of US. If this sentiment is going to continue for a longer term that can result in the strengthening of the gold price.
Direction of US Dollar
In this year, the value of US dollars got reduced when compared to Euro and it got increased when compared to that of Australian dollar. If US dollar is getting increased compared to the leading currencies in the market, then can lead to the decrease in the gold price.
