What affects the price of gold?

[pb427pete]

Hi all,
I have just started trading (spread betting) on the gold spot market and at the moment all is going well, in order to get a proper understanding of the market I've been trying to do some research into what makes the market move and what other markets are linked to gold. I understand that all markets are driven by a simple supply and demand but should I also be looking out for the strength of the dollar and/or mining companies or industries that consume gold? Any ideas or websites which may help would be greatly appreciated.

Pete

 

[dan1986ccfc]

Hi all,
I have just started trading (spread betting) on the gold spot market and at the moment all is going well, in order to get a proper understanding of the market I've been trying to do some research into what makes the market move and what other markets are linked to gold. I understand that all markets are driven by a simple supply and demand but should I also be looking out for the strength of the dollar and/or mining companies or industries that consume gold? Any ideas or websites which may help would be greatly appreciated.

Pete

There's plenty of decent stuff on here. Check out the commodities>metals section

 

[henryley]

Supply and Demand are the most important factors but some additional factors like dollar value, inflation, consumption trends and the price of crude oil will affect the future price of gold too.

 

[pb427pete]

Thanks for the info, I hope it will give me the insight to become a better trader.

Thanks

Pete

 

[TTTC]

Hi Pete,
As much as I understand why you are asking the question, I would ask 'does it matter'.
I trade from charts and trade indices, currencies and commodities. Why a Market moves doesn't necessarily interest me.
I've always found the understanding the fundamentals of any given Market really helps you understand why moves happened, rather than tell you what's going to happen next.
I'm interested in where gold is going next week, rather than why it moved last week.
Please don't think I'm having a pop, because I'm not. Economists are great at telling you why something could move higher, and then coming up with an equally plausible argument for why exactly the opposite could happen.
Trade what you see, not what you think you know!

Best of luck

 

[pb427pete]

You are right TTTC, I am trading from a purely technical point at the moment and only trading from what the graph/chart tells me, I find there is no emotion or opinions with charts, they just give you the price which is all you really need to trade. I just wondered what outside influences were acting on the market purely from an interest point of view as opposed to using them to make trading decisions.
Regards

Pete

 

[Fdrix]

Thanks for sharing such a nice information. It is very useful for me. It will help me a lot.

 

[chocabloc]

Research everything i say!! when i finally start trading i will be looking at all sorts

gl