The value of the dollar: Since gold is quoted in dollars, a strong dollar will tend to dampen gold purchases and therefore lower the price of this asset. Conversely, a weak dollar will have the effect of favoring investment and thus raising the price of gold.
The financial health of importing countries: The greater the economy of the major importing countries, the higher the investment in gold, which will lead to higher prices as determined by the Forex VPS Rating.
The risk level of the other financial markets: As gold is a safe haven, we often see an increase in investments on this asset when other financial markets and especially the stock market are risky or unstable. Also it is interesting to take a stand in times of crisis.
You need to consider these and historical data to make a good analysis of gold prices and value. How to identify the trend of the price of gold? To effectively speculate on the gold price, it is essential to know how to identify a trend to know if it is the right time to sell, buy or hold positions based on the Forex VPS Rating.
To help you, we suggest you to discover here in detail how to identify the trend of the price of gold and the different trends that you can observe thanks to the free graphics offered by the brokers.
The different trends in the price of gold and their graphical representation: As with any other asset, there are three main types of gold price trend, namely a downtrend, bullish or flat (or horizontal) trend.
An uptrend is characterized by a rising curve more or less marked according to the strength. A downward trend is, conversely, characterized by a downward trend more or less marked also.
A flat trend or horizontal tendency will be represented by a flat or marked path of some micromovements that will reflect a certain neutrality. It is of course preferable to take a position to buy on gold at the beginning of an uptrend or at the beginning of a downtrend. We do not recommend taking a position on a flat trend.
How to anticipate a trend on the price of gold? As we have just seen, the best time to take a buy or sell position on the gold price is the beginning of an uptrend or downtrend. But still it is necessary to be able to anticipate this beginning of trend. There are different methods for this.
The first method, which is probably the simplest, is to wait for the real beginning of a trend to take a stand. However, it will be necessary here to make sure of the strength of this tendency.