Gold Rising Again on the Commodities Market
Gold bulls are happy to see that the precious metal is on the rise again. After a dramatic drop ahead of the Easter holiday, gold is on its way back up. This is where things get tricky, since the commodities market, like all markets, is volatile.
Should you invest now, hoping that the price (which is right less than $930 an ounce for gold futures) will rise? Because when gold gets back over $1,000 an ounce, as some predict it will, that is not the time to buy. Here is what MarketWatch reports about gold futures this morning:
“Some investors and speculators feel that the sell-off is overdone and the metal may have become oversold in the short term,” said Mark O’Byrne, executive director at Gold & Silver Investments Ltd.
“While there may be further consolidation at these levels, gold will likely resume its upward march sooner than expected,” he said in a research note.
Do you agree? If so, now is the time to invest in gold. Active traders will want to invest and hold until they’ve made a hefty profit, and then take those profits. The trick is buying while there is a lull in the price, and selling while the price is high — before all the profit-taking kicks in.
Gold bulls will tell you that having gold is a good idea, regardless. While futures are more ethereal (and therefore can be more profitable) than investing in gold bullion itself, there are many arguments in favor of a tangible asset. The choice really depends on what you are comfortable with.
If you are going to invest in gold (futures or bullion) keep something in mind: Gold usually moves inversely to the US dollar. So, as the US dollar weakens, gold prices are supported.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional.
Tags: gold futures market, invest in gold, gold commodities market, US dollar weakness,
gold rising market, investing blog, gold bullion
