How to Read Trends of Gold Pricing

Although not as common today as it was in years past, gold investing is still a thriving industry today. Just watch television for more than 10 minutes and you'll likely see commercials where people are telling you how much money they made by trading in their old gold jewelry. Trends of gold pricing vary depending on several different economic factors.

Gold investment can be done by purchasing gold stock or the more common method of purchasing bullion bars. How to read trends of gold pricing is figured through both technical and fundamental analysis. The technical analysis method of how to predict trends of gold pricing involves analysis of patterns, moving averages, market trends, and economic cycles. Fundamental analysis to determine trends of gold pricing involves looking at the macroeconomic indicators such as gross domestic product GDP growth, interest rates, inflation, and energy prices.

Many times during an economic recession or bear market the price of this precious metal increases as people worry that their currency may be devalued or become worthless so they turn to a tangible asset that is viewed as a tradable commodity during times of crisis. Investors also look to this metal during bull markets to attempt to gain financially.

Gold investment opportunities still abound and people can invest in gold stock, certificates, exchange-trade funds, and spread betting. Although gold is not a mainstream investment vehicle anymore, it is still a viable option for people to make money or as a hedge of protection against economic unrest.

The information supplied in this article is not to be considered as medical advice and is for educational purposes only.