Gold’s $200 price surge since October 2009 has recently lost its momentum. One could view it as a change in the long-term trend or pause in its upward trend.
Usually seasonal demand is low from mid February to April, however after April seasonal demand picks up due to Mothers Day and Christmas since jewelry is a common gift. Therefore, buying gold on dips or during quiet periods may be very rewarding.
Continuations of growing United States trade deficits with Japan and China may continue weaken demand for US Dollars, because of this investment funds may continue to buy gold for their portfolios since it’s a tangible asset not a paper one.
If an investor wanted to trade gold, they could trade Exchange Traded Funds, purchase gold bullion, trade futures or option contracts over the next few quarters to take advantage of gold’s seasonal tendency for price gains.
Acquiring a financial option specialist can help you trade gold option contracts. HB Group can be very helpful with their experience and knowledge with these financial instruments. You could visit them at www.hbgroupintl.com.
