Fundamentals remain in order for gold to carry on its bull run
The reality might be harsh as it is certain; this current unpredictable trend in the economy could compel prices to new limits. Now that America has nearly doubled its balance sheet, the certainty of the matter is undeniable, it is not gold or any other precious metals and commodities that are getting more costly but ironically it is the currency that is tumbling down the economic drain.
In recent developments, the price of gold have been under stressed and is continuously struggling with little advancements and still stuck under less than average $1,700 an ounce level since the start of March this year. Furthermore, on the New York Mercantile Exchange rated its lowest levels by far this year with gold price of 1.05 percent over the week. Although gold is fighting through to upset in the short term, the fundamental drivers of the bull market surprisingly made its stand for more than a decade. With the plight of today’s economy entrepreneurs and investors are taking their investments in tighter safeguarding with limiting their purchasing powers which consequently led to gold as a retail commodity that is more available at present.
With the Eurozone crisis comprising the bulk of the economic instability there is less promising leads in finding a much needed solution to calm the imperfections within the euro currency system. This economic turmoil led to Dutch Prime Minister Mark Rutte and majority of his cabinet members to resign after failing to come into terms on reducing the nation’s resources to level with the guidelines set by the union.
In retrospect, central banks will push through to be net purchasers of the precious metal. This means that spread betting can be quite useful in gaining the upper hand in profit gains since spread betting is a strategy that can be done in both long term and short term trading. Since gold is in a short term adjustment, spread bets on both long and short term outlook to gold trades can benefit investors in market volatility and monetary growth that could possibly revive the gold Bull Run once again.
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