What really affects gold prices in the Forex market? Well, if you have been reading this for any length of time, then I'm sure you have already guessed the answer to this question, and I would like to tell you that it has more to do with speculation rather than anything concrete.
The reality is that gold prices are not determined in a way that can be predicted by anyone outside of the financial industry. There are many different factors that have an effect on the price of gold, and none of them are entirely understood.
One of the most popular factors is speculation. For example, in the late nineties, there was such a hype over the possibility of using the Internet as a means of trading in the currency markets, that the price of gold rose sharply due to a lack of demand. Now we know how that turned out!
Many people also speculate about the price of gold going up and down. If they are right about that, then they should be aware that it is something of a guessing game, and that if they are wrong, their predictions will only be partially accurate.
So, when we get asked what affects gold prices in the Forex market, what we are really looking at is the opinions of people who have been paying attention to the price of gold since the nineteen eighties. Their predictions are based on their experience of how the price of gold is affected by various changes in supply and demand, as well as the overall economic situation. Of course, some of them are just trying to make some money, but the truth is, those predictions are mostly worthless.
This is because, as I said before, there is no true understanding of what affects gold prices in the Forex market and even less of any knowledge of how the economy works. But, if you're still interested, take some time and think about it - after all, you will be investing money in your Forex account - you want to make a profit, right?
So, what influences the price in the Forex market? You'll find that there are several factors, some of which are discussed in this article, but you can also learn about them through the links that follow.
Supply and Demand for the US dollar, the value of gold, and the overall economy, all affect the price of gold. In addition, you will also find that the price is influenced by speculation, and guesses.
It's important to keep in mind that no matter what you hear, there is just no such thing as a universally accepted explanation of what affects gold prices in the Forex market. The best you can do is to listen to what others have to say and determine for yourself.