PRLog - Nov. 8, 2012 - SAN JOSE, Costa Rica -- The Accredited FX Senior Broker went on to say that many people erroneously believe that gold has gone down 2.70.
Gold Price vs. the U.S. Dollar – Accredited FX
“That is not the case at all,” states Frank Goldman, “In actuality gold rose 1.10”.
“We have to look at the strength of the U.S. dollar to understand the gold position”, he added.
Since gold is a U.S. dollar-denominated commodity, when the dollar is strong, it takes fewer dollars to purchase gold. The reverse is true when the U.S. dollar weakens. This partially explains the recent fluctuations we have seen in gold. The other element of the equation is the supply and demand for the commodity. If the gold price is higher when measured in other currencies as well, then we can deduce that demand is higher and has increased in actual value.
“If we look at the U.S. dollar as expressed by the U.S. Dollar Index® which is determined by six major foreign currencies, this gives us a more accurate measurement of the strength of gold based on predominant buyers in the world market, ” added the Accredited FX broker.
From a technical standpoint, the gold futures bulls are experiencing a good week. This weeks high was $1733.00 and their objective is to close at a chart resistance of $1755.00.
Accredited FX and Frank Goldman are long term gold bulls with investments on behalf of both retail and corporate clients in gold options with various expiry dates and prices."
Accredited International provides Forex trading services to corporate and institutional investors throughout the world from their head office in San Jose, Costa Rica.
Accredited FX is the managed accounts division of the company and provides Forex trading services to retail investors with minimum account balances starting at $5,000. Clients have access to one of the most sophisticated online trading systems available.
To open an account with Accredited FX, please visit our website at http://www.accreditedfx.com or call our client services team at +1 855 274 7539.
Forex trading involves substantial risk of loss and is not suitable for everybody. Only risk capital should be invested.