Price Of Gold Has Slumped



In the past seven days the the price of gold has slumped significantly, plunging nearly 8 per cent in a single week. For anybody who trades precious metals or who bets on the fortunes of these markets, the past week has been an eye opener. Traders at eToro and other online investment sites saw gold head down towards the critical 1180 support price as the trading week got underway in Asia but will the downward spiral continue or will the price of gold rebound?

Gold prices have experienced an impressive run over the past couple of years, with two obvious contributing factors. Firstly, due to the economic and financial uncertainty in many parts of the world, investors at sites like eToro have favoured gold and commodities over buying currencies. Secondly, the ultra-low interest rates offered by many central banks has lead to many traders investing in gold as a ‘safe haven’ for their money.

Gold isn’t the only precious metal to have suffered recently. Because the price other metals such as silver and platinum shadows the price of gold, these other metals have seen their prices fall over the past week as they mimic the market movement gold.

However, just because the price of gold is falling, this doesn’t mean that traders can’t still make a profit. On the contrary. Because trading sites like eToro allow you to either buy or sell positions, you can make gains on your investment by opening trades that will cut a profit if the markets fall, as opposed to traditional share trading, which requires you to buy shares in companies that will increase in value before you make a profit.

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