Gold

Gold

Each day as the values ​​of currencies, bonds, stocks, commodities and gold change, investors tried to determine which sector will provide the best returns over the next 3-5 years. While past performance is no guarantee of future performance, gold is one of the best assets during the last decade, and if you have the fundamentals driving the gold price, it is reasonable to assume that this trend will continue in the foreseeable future.

The price of gold is determined by many different factors such as basic supply and demand dynamics, geo-political developments, currency values ​​.... Especially the U.S. dollar, the central bank activity. It does not trade in isolation, and the price varies as well as the prices of various currencies. The U.S. dollar reached its peak in 2001, relative values ​​of global currencies especially the U.S. dollar were the main driving force behind higher prices of gold.

Markets such as stocks or finance tend to be traded locally during the working day in his time. For example, Hong Kong traders are focusing primarily on Chinese stocks while European traders focus on U.S. and European stock traders of U.S. stocks and finance. While most of these traders to keep a sharp eye on what happens elsewhere as nowadays many of the global

markets are integrated, an event that is Brazil, which directly affects Brazilian stocks may not have the same effect in the U.S.. Global currencies or foreign exchange market, on the other hand is an asset class that is a real global economic growth reflects everyone on this planet. Whatever impact the currencies in Tokyo say they will have an effect on what happens to currencies in London or New York. And, as the values ​​of these currencies change, so does the value of gold. Clearly there is inter-market relationships between currencies and gold.