Gold experiences price rollercoaster due to fluctuating dollar
The price of gold has risen against a weak dollar only one week after falling as the dollar seemed to be going through a rally. The market has been volatile since the start of the global recession but has been undergoing an even more troublesome period lately as tentative reports come in of economic recovery and increased confidence in the USA. A week ago, the dollar was at a high amid increased confidence, now the Federal Reserve has announced that interest rates (which were cut recently) will stay low for an extended period. This of course does not instil confidence in the economy of the most powerful country in the world and means gold becomes an attractive investment again. Who knows what will happen with gold over the next few days.
How to benefit if you own gold? Whether you own a vault of gold bullion or a jewellery drawer full of gold bits and pieces you never wear – now is a good time to sell. Gold has risen again to $1,682.60 but could fall again just as quickly as the US does more to initiate further economic recovery.
Reports are coming in of resurgence in the jobs market in the US which will make overall economic predictions higher in the long run. Economic recovery and a stronger dollar are of course, excellent news for the world but terrible news for gold, as investment fueled demand falls when the dollar is strong and the government shows confidence in it. Recovery is inevitable, so while it might not be a good idea to suddenly get rid of your bullion vault, selling your odd bits and pieces as the price of gold and the economy stands at this moment in time is a great idea and will potentially generate more profit than if you wait.
Just ensure you get the best price for gold before you agree to sell. Cash for gold buyers vary greatly in their payments so make sure you use a site that will compare gold for cash buyers.