Is Gold The Commodity To Trade with Price Fall In Oil?

When one is introduced to commodity trading one of the most common attractions is usually gold. To trade gold for profit literally means that buying of gold at lower price and selling at a higher price should be achieved. However trading in gold has become difficult, as there is high non-interest paying gold losing a further 10 percent in 2015. With predictions done by experts suggesting Gold will have another tough year in 2016, a swing has been realized if the live mcx prices are anything to go by. However even with this the question that still remains is gold the commodity to trade in with price falls in oil.

Middle East tension

According to mcx market news as at January 4th 2016, Gold has been able to gain as much as 1%. This comes about as Saudi Arabia has cuts ties with Iran the previous Sunday. This arose as the embassy in Tehran is in an ever increasing row, due to the execution of Shi'ite Muslim cleric. As a result oil prices fell due and even Chinese stocks trading had to be halted, as it tumbled down 7 percent as other alternatives used namely Gold.

Financial uncertainties

With tensions rising high in the Middle East, gold has been thrown into the limelight. It is being used as the next best alternative investment, due to the financial uncertainties. However with the fact that it is being used as a safe haven, it is yet to stabilize and market surveillance has to be done all year in 2016 to see if interest’s rates continue going up or lose out.

Weaker dollar

The dollar and gold are usually taken as one in the commodity trading market. However after recording another low falling 10 weeks straight against the yen, gold becomes significantly cheaper. Recognizing the volatile market the Federal Reserve has raised US rates in December 2015 for the first time to boost the dollar. With this a gradual hike is expected strengthening the dollar in the process. However with analysts sitting on both sides of the issue, some supporting while others predicting a further drop in Gold prices, live mcx price have varied as further investigation and time has to be placed to see results.

Stronger/ Weaker commodities

With the falling of prices in oil, other commodities expected to take top spots as the go to commodity trading good have been declared as weaker. This comes about as the Chinese manufacturing survey undertaken weakened further any hope of recovery of commodities in the sector. In this case platinum group metals weakened further trading at$876 an ounce losing 1.5 percent, while palladium fell even lower 2.8 percent trading at $546.16 for every ounce. However even with the boost in gold prices there are other commodity trading goods that have also managed to gain with the loss in oil prices. Looking at the live mcx prices silver traded at 13.96, being raised by 1.3 percent in the process.

So is Gold the commodity to trade in with the price fall in oil? With both positives and negatives at par, there is no definite answer to the question. However with gold being boosted for the first time after suffering a 7 year price fall, it has the possibility of gaining further in the future. Thus keeping a close eye at live mcx control and mcx market news should be done to get a profit in gold trade.

Author

livemcxcontrol.com is India's well known and fastest growing live mcxcontrol data provider that offers latest, working and accurate commodity investment tips and market research. Here you can easily watch live mcxcontrol ideas in india and earn more and more without loosing much money.

I am a trade expert or blog writer at lvemcxcontrol.com and lobe to write on fashion, travel or trading.