US Dollar Rally Weakens Gold Price Outlook

London (Sept 17)  Trading commodities can be very lucrative and very costly if you miss the timing. For most of 2018 I have watched people recommend gold as an investment. It sounds good, doesn’t it? Gold is only supposed to appreciate over time, and if you just hang on long enough it will pay off. Gold appreciates in decades not in months or years. If you jump in too soon, you will underperform the S&P 500 or worse. You should consider some things if you decide to invest in gold.

I know you have seen at least one commercial about the long term potential of gold. Investors made multiples on their money on the last gold boom. You can make a fortune trading gold if you know when to get in. At the same time, if you bought gold in 2011, then you are probably still down about 40% on your investment. Gold like many investments has a time when it shines.

I enjoy reading gold articles because it’s fun to see how people view different investments. In general people are bullish towards gold investing. Again all you have to do is wait long enough and you will be right about its bullish outcome. Just keep waiting… I have traded gold long enough to know when it’s set for a breakout. Now is not that time. The simplest approach for me works best and I will highlight what things I look for before looking deeper.

Gold Price

The market is all about supply and demand. Gold has limited supply and most of the gold reserves have been located. Over a prolonged period of time, with a steady demand you would expect price to appreciate. In an equities market, people tend to demand gold in their portfolio as a hedge against uncertainty. Demand for gold increases when a recession seems likely. This is just one factor and since the market outlook for 2019 currently looks good, then investing demand in gold speaks for itself.

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