Fundamental Analysis Investing In Gold Stocks
Saturday, July 23, 2011 by Willie Filmore
It is estimated that the future price of gold could rise to more than $ 2,000 dollars per ounce in the year 2010. This is one of the opinions of the Billionaire Head of Fans John f. Quensen. But how can we be sure of this and the factors to consider when making such predictions. Here is tips how to do fundamental analysis gold trade
What affects the price of gold?
If one is to predict gold prices in the future then they should consider the main factors that affect the price. These factors
* Investment Request
* The Market Fundamentals
* The Physical Condition Of The Market
Investors should consider how different factors may be changed in the years to come. For example, below is how the US economy could affect the gold price. This includes three actors above.
The impact of the US economy in the future gold price
Gold is a commodity that is used as a "fence enclosure" against the US dollar fluctuations. Simply put, this means that as the value of the dollar falling value of gold goes up and vice versa.
The u.s. dollar is one of the most powerful and most stable currency in the world. One of the reasons for the strength and stability are the Federal Reserve Bank (also known as The Fed), which governs monetary policy, regulates the supply of dollars, and determine the level of interest rates. Regulations of the central bank is an important factor in the stability of the currency and The Fed is one of the most active and is the bank that stands on its own.
The dollar was also very strong and stable because the United States is one of the world-leading in finance with a gross domestic product (GDP), making the economy US13 trillion, the largest in the world.
The u.s. is largely driven by the services of the country, with almost 80% of the GDP comes from the service sector. For this reason, the u.s. is the largest trade partner for many countries. In fact, import and export volume exceeds
other u.s. State, though still one country, and represent twenty percent of total world trade.
The five largest export market for Us are:
1. Canada
2. Mexico
3. China
4. Japan
5. Germany
The largest import markets for Americans is:
1. China
2. Canada
3. Mexico
4. Japan
5. Germany
What affects the price of the Dollar?
The value of the USD was very closely associated with the growth of the US economy. Economic reports are released throughout the month gives details about the health and economic growth in the United States.
Interest Rates:
The most important factor is the interest rate affects the value of the currency. Higher interest rates attract more investment, causing the value of the currency goes up. Instead, investors will sell (or buy) a currency with the lower interest rates. Investors tend to buy a currency with a higher yielding interest rate.
However, the current interest rate is not as important as the overall direction of the aspect. This is a question which is much larger because it requires more detailed investigation into the growth rate and inflation, overall good health and vitality, and political stability.
A decision by the Fed on interest rates or announcements can lead to big changes. The decision to raise interest rates of the currencies can cause prices to rise. The decision to lower rates can lead to currency rates fell quite dramatically. Even the announcement to maintain the level of interest rates in the world of Forex monumental (foreign exchange). I will write another article for how to do fundamental analysis gold trade next times.
What affects the price of gold?
If one is to predict gold prices in the future then they should consider the main factors that affect the price. These factors
* Investment Request
* The Market Fundamentals
* The Physical Condition Of The Market
Investors should consider how different factors may be changed in the years to come. For example, below is how the US economy could affect the gold price. This includes three actors above.
The impact of the US economy in the future gold price
Gold is a commodity that is used as a "fence enclosure" against the US dollar fluctuations. Simply put, this means that as the value of the dollar falling value of gold goes up and vice versa.
The u.s. dollar is one of the most powerful and most stable currency in the world. One of the reasons for the strength and stability are the Federal Reserve Bank (also known as The Fed), which governs monetary policy, regulates the supply of dollars, and determine the level of interest rates. Regulations of the central bank is an important factor in the stability of the currency and The Fed is one of the most active and is the bank that stands on its own.
The dollar was also very strong and stable because the United States is one of the world-leading in finance with a gross domestic product (GDP), making the economy US13 trillion, the largest in the world.
The u.s. is largely driven by the services of the country, with almost 80% of the GDP comes from the service sector. For this reason, the u.s. is the largest trade partner for many countries. In fact, import and export volume exceeds
other u.s. State, though still one country, and represent twenty percent of total world trade.
The five largest export market for Us are:
1. Canada
2. Mexico
3. China
4. Japan
5. Germany
The largest import markets for Americans is:
1. China
2. Canada
3. Mexico
4. Japan
5. Germany
What affects the price of the Dollar?
The value of the USD was very closely associated with the growth of the US economy. Economic reports are released throughout the month gives details about the health and economic growth in the United States.
Interest Rates:
The most important factor is the interest rate affects the value of the currency. Higher interest rates attract more investment, causing the value of the currency goes up. Instead, investors will sell (or buy) a currency with the lower interest rates. Investors tend to buy a currency with a higher yielding interest rate.
However, the current interest rate is not as important as the overall direction of the aspect. This is a question which is much larger because it requires more detailed investigation into the growth rate and inflation, overall good health and vitality, and political stability.
A decision by the Fed on interest rates or announcements can lead to big changes. The decision to raise interest rates of the currencies can cause prices to rise. The decision to lower rates can lead to currency rates fell quite dramatically. Even the announcement to maintain the level of interest rates in the world of Forex monumental (foreign exchange). I will write another article for how to do fundamental analysis gold trade next times.
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