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Thanks to the world’s numerous financial crises and investors’ appetite for safe haven options, gold trading is as popular as ever at eToro (your capital is at risk) and other leading online brokers. The price of gold has been rocketing over the last few months, reaching a new record high of $1,681.65 per ounce during Thursday’s trading sessions, but will the gold bubble burst or can we consider the precious metal a safe commodity to trade for the foreseeable future?

As silver prices almost always mirror the fortunes of gold prices, the price of silver has been on the rise too, climbing by over 25 per cent over the last year. Gold and silver have been bucking the trend recently, with both of their prices significantly increasing, while practically all other commodities and stock markets have been recording negative numbers during the same period.

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Over the past week there have been twist and turns across the world’s Forex markets, with many factors ranging from unemployment numbers to economic crises affecting the fortunes of foreign currencies and their exchange rates across the globe. Keep reading to find out what happened to the major currencies over the last seven days.

Last week the world’s most traded currency, the US dollar took a turn southward, reversing the advances made in previous weeks. Worse than expected manufacturing figures, higher unemployment and low consumer confidence left many Forex traders at eToro (your capital is at risk) and other markets believing that the US Federal Reserve continue to keep interest rates low.

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Even though the world foreign exchange markets are open 24 hours a day 5 days a week, as are online Forex brokers such as eToro (your capital is at risk), this doesn’t mean that you should trade Forex all day every day. Some periods of the trading day and week are more profitable than others. So when is the best time to trade Forex? When should we log into our Forex trading accounts and start opening positions?

The big bucks made from Forex trading are done so when the markets are moving. When the markets are stagnant it can be very difficult to beat the spread, so a volatile market is a market full of opportunity and possible profits for the shrewd trader.

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Speculators and investors at eToro (your capital is at risk) and other online commodities brokers witnessed gold prices soar on Wednesday, breaking the ‘golden’ $1,500 mark in the process. And just like previous hikes in the price of gold, the price of other commodities benefitted too. This latest advance by the valuable metal has gone further than many analysts predicted and if you were on the gold wagon as it reached these dizzy heights on Wednesday you should be a happy trader right now.

Last week fear of inflation pushed gold prices up to the dizzy heights of $1,486 and the just the same as today, other precious metals including silver also climbed in value. Today silver traded above the $45.00 mark, climbing by 54 cents and hitting a 31-year high for the heavily traded commodity but what does the future hold for commodities such as silver and gold?

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Even though the euro has already benefitted greatly from the predicted interest rate rise tomorrow it still continued to make headway against its US counterpart, while the Japanese yen dropped to new lows. Forex traders at eToro (your capital is at risk) watched the euro soar to a 14-month high against the dollar during today’s European trading sessions, at the same time as the yen fell to a a six-month low against the dollar and an 11-month low against the euro.

Unsurprisingly, the Japanese yen has been under the cosh since the devastating earthquake and tsunami that threw the yen into a chaotic position. However, the Bank of Japan has made numerous efforts to stabilise the yen but this hasn’t stopped the Japanese currency falling further. The EUR/JPY climbed to a high of 121.97 before settling at 121.70, which the USD/JPY was up 0.2 per cent at 85.12.

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During yesterday traders at eToro (your capital is at risk) saw gold climb to a near-record high thanks to the turmoil in Libya and the Middle-East. Silver has also benefitted from the unrest in the Arab nations, climbing to its highest level since 1980. Oil too increased in price due to the uncertainty in the region, making it to over $100 per barrel.

In a similar fashion to Forex traders when they buy US dollars and Swiss francs to reduce risk, gold is also considered a safe haven commodity that’s seen a huge rise in demand so far this week. This demand for the sought after precious metal saw it rise in price to $1,435.60 per ounce yesterday as traders shifted investments to avoid the market turbulence caused by the unrest in the Middle-East.

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Following last week’s decision by the Bank of England to maintain the country’s interest rates at 0.5 per cent sterling has struggled. This is because a low interest rate stifles an economy’s currency, while a rise in interest rates can cause a currency to strengthen. However, along with interest rates, tomorrow’s UK unemployment figures could boost sterling if they were to show a decline from the massive 7.9 per cent figure of November last year.

Traders at eToro (your capital is at risk) and other online Forex brokers will be watching closely to see what the unemployment figures for December will be. If the UK’s unemployment numbers fall from the previous month we could witness a resurgence for the British pound, which may in turn help to boost the sluggish economic recovery.

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Yesterday saw North and South Korea exchanging a volley of shells near to their disputed border territories and as any good skirmish does, the Korean conflict boosted gold prices at online brokers such as eToro (your capital is at risk). However, the civil unrest in Korea only managed to create a temporary spike as the strengthening dollar quickly suppressed the rising price of gold.

You may be wondering how an outbreak of military conflict can affect the price of gold, there certainly aren’t any gold plated tanks that I know of! Once news of the conflict in Korea had made its way across Asia risk aversion tactics were quickly employed. These tactics included selling local currencies against the US dollar, a popular safe haven for investors and in turn pushing up the price of gold.

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News today from the Bank of England Governor, Mervyn King regarding the UK’s economic outlook saw GBP currency pairs climb ahead of many of its foreign counterparts at eToro (your capital is at risk) and other online Forex brokers. The release of this dovish report indicates that the chances of further UK monetary easing measures are less likely.

The Euro lost ground against the British pound with sterling peaking advancing during the European trading session before retreating during the US sessions, and in a day when the US dollar was making advances against just about every other currency, the GBP/USD remained relatively steady.

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While trading at any of the internet’s online Forex brokers, such as eToro (your capital is at risk), you will come across the term ‘fundamental analysis’. If, like me early in my trading days, you are bombarded with new trading terms when you first start out this may just be another confusing term but what is fundamental analysis in Forex trading and how does it affect the way that you buy and sell pairs?

Simply put fundamental analysis is the study of how various global economic indicators, government policies from around the world and social factors affect currency prices. For example, if the US were to release higher than expected unemployment figures this would play a part in devaluing the dollar.

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