Gold prices may fall if markets make good on the bearish chart setup. The bull market has been going for almost a decade now and gold has made great gains in its value. Gold futures contracts for the upcoming year have also been expected to be strong, given the recent weakness of the dollar.
Investors who have looked closely at the gold price in recent months are likely to be disappointed. Traders had been speculating that the price of gold may soon be set to fall due to economic uncertainty, political crisis and rising inflation. But as it turned out, the market turned bearish. Now gold will likely continue to rise, but it remains to be seen how far the price may fall.
The fall was triggered by the market makers who made big profits in buying gold in the past when the prices were high. It is important to note that most of the world’s major central banks buy gold every day from the market makers. Therefore, it is easy to understand why traders expect a drop in gold prices. The market makers have the ability to move the price of gold depending on their own decision making process. In the last few months, market makers had been making huge profits as they sold a lot of gold when the prices were high and bought it at a lower price to sell.
Since the market makers are the ones who actually control the gold market, many analysts believe they could make big losses as they try to recover from the drop in gold prices. Another concern is that the large number of gold market makers may not be able to cover the number of buyers in the market. Many people will therefore be forced to take action to short the prices of gold.
In order to avoid losses, most gold buyers will stay away from the market and hold onto their precious metal for the coming months. Gold futures contracts for the coming year are not likely to be as strong as the ones traded during last summer. It may be possible that the market will not make such large losses and that investors may still be able to obtain a fair return on their investments.
Experts will be watching closely the movement of the gold market to see if the prices do indeed fall. This means that the market will probably remain strong and remain bullish. However, it may also mean that investors will lose a lot of money.
This is because the large gold buyer or seller will lose all of its profits as a result of selling its gold when the prices are low and buying it at a higher price to cover the difference. at a later date. However, a weak market may not affect the overall value of gold.
Even if the market does fall, many investors will still be able to get a fair return on their investments. Those who are looking forward to making a profit should look into trading gold futures contract during the autumn months.
Many people will also find that gold futures contract during this time period will be cheaper than when gold prices are higher. Investors will also get better deals. This means that gold buyers should be more choosy about choosing a broker to buy or sell gold futures.
When an investor chooses a broker, he or she should also check the background of the person before getting into a futures contract with him or her. There are plenty of people who have made huge profits by selling gold futures contracts when the prices were higher and buying them when they were lower. However, not all brokers offer good service.
People looking for this kind of service can turn to online trading firms that allow investors to search through a database of firms offering great service. These firms are easily found and do not require that investors use any money upfront to get started. Instead, they give a small commission to the broker once an investor signs up.
This type of arrangement will also make investing in gold easier. It gives investors the convenience of doing the research without having to worry about paying any money up front. Most investors will save a lot of money by using online trading companies instead of going to traditional trading companies. Online trading firms also offer better services and lower commissions so they provide more benefits than other brokers.
