If you want some free trading education about some of the key variables that can impact gold prices, you have come to the right place.
This morning, the U.S. dollar dropped to its lowest price in two weeks relative to other currencies, Reuters reports. One major contributor to this depreciation in the currency was a rising yen, and the ICE dollar index dropped during the day.
The value of the greenback is crucial to the prices of commodities since many contracts for these raw materials are denominated in the U.S. dollar. As a result, if the currency value falls, it makes it more expensive for market participants using foreign currencies to purchase these contracts.
Phil Streible, a senior commodity broker at R.J. O'Brien & Associates in Chicago, noted the key importance that the currency played in gold's depreciation during a telephone interview with Bloomberg.
The precious metal surged in early trade on May 30, as August gold was 1.4 percent higher at $1,411.90 an ounce at 9:35 a.m. on the Comex division of the New York Mercantile Exchange, according to the media outlet.
If you want additional free trading education, you can find it at TradingPub, home to some of the top investors and traders in the industry.