Gold Speculation and Trading
Gold continues to benefit from an almost perfect storm of weak currencies, minimal interest rates, fears about future inflation and fears about financial stability.
None of these worries look like going away any time soon and so gold marches higher. Not only this but some of the big commodity traders are apparently long of gold.
The problem for investors is that gold is subject to wild swings. The price is susceptible to a sharp correction if, all of a sudden, the bulls run for the exit.
Recently we saw eleven up-days in a row culminating in a $27 surge. While it is difficult to be negative in the face of such committed buying across the globe, this does not mean that the moves are permanently one directional.
Gold is trading almost pip for pip versus the Dollar index. That is mainly the Euro and Yen component of Dollar Index as dealers try to gauge the pressure release on assets of the Dollar/Yuan currency fixing.
Gold remains the purchase of choice for many as a quasi Dollar hedge versus the Yuan, Yen and Euro. This state of affairs is difficult to forecast.
Having said that, if you wanted to trade the gold market, and gain access to speculating on the price to go up or down, then you could spread bet on it.
For example, on visiting a spread trading site like
About the Author:
Daniel Jones is a seasoned spread trading professional and commentator on some of the leading financial spread betting sites.