Last week we showed you a video that demonstrated how accurately VantagePoint’s market forecasts predicted trend changes in Gold. If you missed that video Go Here to watch it now.
The price of gold is ubiquitous in today’s markets, affecting many different sectors. Traditionally, investors may buy gold to protect their wealth against losses in other markets on the belief that the precious metal will hold its value better than stocks or cash. This hasn’t always held true.
If you’re a gold trader you know it’s ever present role in many markets and economies has made gold a standard in market trend reporting from the media and financial press. Unlike physical commodities whose prices tend to revolve around supply and demand, gold can almost be considered its own financial market in the sense that it responds to emotion such as fear.
What affects the price of gold?
Many gold traders see this metal as a safety blanket, especially in times of crisis. War, natural disaster or a stock market crash can all cause a buying frenzy in gold as traders view this commodity as more valuable than paper.
Gold also has an inverse relationship with the US dollar so as the value of the US dollar declines, we should expect to see a rise in the price of gold.
Trading Gold Using Intermarket Analysis.
Gold has rebounded in early 2015 starting the year off strong. Watch this video to see how VantagePoint accurately predicted trend moves for gold.
However, the uncertainty of the Federal Reserve may mute gold’s rise. The U.S. central bank is widely expected to raise interest rates in the second half of this year, a policy shift that is expected to push gold prices lower. Gold doesn’t pay interest or dividends and finds it difficult to compete with Treasury bonds and other interest-bearing assets when rates are rising.
The US dollar will also come into play. When the greenback eases, dollar-denominated gold becomes less expensive to investors who use other currencies.
There should be a number of trading opportunities in gold futures and gold ETFs but these markets will be extreme; volatile.
This requires state of the art market forecasting tools.
VantagePoint Software helps traders understand the impact and influences that related markets have on one another. By understanding these complex relationships, our customers have a bird’s eye view of market behavior days ahead of the trends, which increases their confidence in each position and allows them to become more profitable. VantagePoint is by far the most sophisticated intermarket analysis in the industry. It uses a neural network process to identify which markets have the most influence on a target market, then produces a set of intermarket data to generate predictive indicators for short-term price trend forecasts for the new market realities.