The posts on this blog have been about trading
currency pairs; in this post is the content about commodities. The commodity is
gold.
Gold
Gold is a commodity and the most of it comes from India
Impact on
the price of gold
Industries
The demand and supply of these industries have an
impact on the pricing.
Big events
Big events as the Indian wedding seasons (from September
to December) have also impact on the price.
The
dollar, inflation and interest rate
The price of gold is valued in dollars which makes the
price of the dollar an element in the pricing. As currencies are influenced by the
inflation rate and the interest rate are they also factors that influence the
price of gold.
The inflation is measured by the consumer price index
(CPI); if the inflation starts to rise the impact of the gold price is negative
which means that the price will fall on gold.
Before starting to hedge gold and inflation it would
be a good idea to know the inflation rate around the world as the inflation's
impact on the gold is not equivalent cause to the calculation of the inflation
rate.
The price
of gold
The price of gold in 2013 has been bearish; as it is
decreased from 1.780 dollars in October 2012 to 1.230 in
December 2013.
In the short run gold has been bullish and bearish.
How to buy
gold
Gold can be brought on an online CFD trading platform;
gold is placed under the section commodities.
More about how to trade on an online trading platform
is illustrated in the video on my website.
