Keep this in mind when trading Binary Options with Gold!

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Photo: Matt Katzenberger

Gold is a valuable and precious metal dated back in history.  It used for making coins, jewelry and for monetary purposes. There have been many predictions of gold prices from 1974 to date. This article will base mainly on the prices of gold and the fluctuations in the market from 2010 to 2014. It is important as an investor to understand the factors that lead to the increase and decrease in the prices of gold. Gold and silver have been high ranking in the market. In 2010, gold was at $1200 and the gold analysts expected to reach a target of $2000.  In 2011, gold hit a price of $1925 and it was expected to rise higher. On that note, the price of gold was at $ 1732 by January 2012 a price lower than the expected. The predictions of 2014 financial year are ironical.

Basically, the price of the commodity has been increasing steadily from 2010 to 2012. But the prices have declined from 2013 to early 2014. 2013 was a dark year for gold investors. The price was lower than $1000.  During early 2014, the prices were low as $ 1200. Investors and traders of gold were wondering where the future of the precious metal was headed to. The metal is expected to trade up to $ 1307 or even below according to the analysis down this year. The current price of the metal may remain constant for the part of the year and expected to rise with momentum in 2015.

What are the factors that lead to the fluctuations of gold?  Take a look at the following; Supply of gold There is an agency that tracks and records the amount of gold in supply based in London, England. According to the Agency, only 60% of the gold mines have been mined world –wide since 1950. United States are the current largest producers of gold with an average production of 8,133.5 tons annually. Other high ranking producers include; Italy, Germany and France.

Apart from that, another great factor is the dollar. When the prices of the dollar decline, the price of gold tends to rise.  But there have been incidences where the price of gold has not being affected by the dollar. Other factors include; demand and United States inflation rate.

To achieve a better prediction of the prices of gold, the investor should use technical and fundamental analysis. Fundamental analysis involves the understanding of securities, stocks and bonds. On the other hand, technical analysis involves the use of real information to forecast the prices of gold. It includes; profits, sales and interest rates. Apart from that, Technical analysis aids in determining the supply and demand of the metal in the market hence enabling investors know its future trend. To succeed in trading binary options with gold, get to understand the trading strategies.

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Author: Binary Experts

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