Weakened Dollar Leads to Gains for Gold

The price of gold got a significant boost on Friday, after better than expected US jobs data caused the safe-haven greenback to slide against its main currency rivals. As a result, gold became more affordable for international buyers which led to an increase in demand. The precious metal finished out the week at $1603.21 an ounce, up more than $20 during the second half of the day, and slightly below its high for the day at $1606.53. This week, gold traders will want to continue monitoring US and euro-zone data and how it affects the dollar. Any negative news could result in risk aversion in the marketplace, which may lead gains for the safe-haven greenback and gold giving up some of its recent gains. That being said, should investor confidence in the global economic recovery increase further, gold may be able to extend its recent bullish trend.

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. ForexYard