Gold Prices Are Set To Rise During 2012

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Etoro

For the past five weeks the price of gold has made consistent gains but many market analysts believe that this week may see the price of the precious metal retreat a little. However, this dip is believed to be a short term trend that will quickly reverse, as many traders at eToro and other commodities trading sites are predicting that gold prices are set to rise during 2012.

The price of gold fell during Friday’s New York trading session, closing at $1,740.30 an ounce, which was down on the day but marginally up on the week once again. The main catalyst for the sudden dip in the price of gold on Friday was strong US employment figures and the news of 243,000 jobs being created, which boosted the strength of the US dollar. Because gold is traded in US dollars, the stronger the dollar is the weaker gold is. This is why gold struggled against the strong dollar on Friday.

There’s no doubt that as market uncertainty continues to grip global economies, many are choosing to invest in gold as a safe haven option, avoiding the more volatile trading forums such as stock markets and Forex markets. And this trend of buying gold, along with a generally underperforming US dollar, is also pushing up the price of the precious metal.

If you want to trade gold or silver you can do so online quickly and simply at eToro. eToro is one of the internet’s biggest and best mobile trading site that offers both commodities trading such as gold and silver and also a wide choice of Forex currency pairs to speculate the future of. However, if you’re in it for the long haul you should keep a keen eye on the price of gold and wait for your chance to buy cheap, as it’s widely believed that gold prices are set to rise during 2012. To start trading gold and other commodities online visit www.etoro.com.