As the financial market experienced some firming of risk appetite at the beginning of the trading week, crude oil prices rose significantly alongside shares as gold prices plunged. Donald Trump was elected as the new president of the United States, and this also caused the price of the dollar to plunge. While the economy is looking uncertain, and may remain this way into the near future, there has never been a better time to invest in gold.
As the U.S. election dominates the news, financial markets are suffering from a degree of uncertainty which will be set to continue with the Trump victory. Futures tracking both U.S. and European stock benchmarks are currently pointing firmly higher, with hints that risk-on dynamics are likely to carry forward during the forthcoming months. In this regard, a relatively quiet economic data pocket is likely to help. Political news remains a crucial consideration for the financial market; however, knee-jerk volatility is increasingly more concerning as markets weigh up the impact of the Trump presidency and what this will ultimately mean for the U.S. economy.
Investing in Gold.
The drop in gold prices has been taken advantage of by a number of commodities investors, with now being the best time to take the plunge if you are thinking of opening a gold IRA or 401(k) through Goldco Precious Metals. Once again, gold prices have challenged the $1,300/oz figure, falling to $1,292.75 per troy ounce on the New York Mercantile Exchange Comex division. Along with this, commodities investors interested in crude oil may want to use the market instability to their advantage, with crude oil prices falling for a sixth consecutive day, the longest losing streak experienced by this industry in the last four months.
Why Invest in Commodities Now?
The drop in prices of commodities such as gold or crude oil has made now a prime time to make investments. The uncertainty and instability of the current financial market means investors can take advantage of lower prices and a variety of bargains, if they know where to buy. Commodities are becoming an increasingly popular choice for many investors, as they reduce risk by creating less portfolio volatility. Along with that, investing in certain commodities can also help to increase the strength and weight of various stocks, such as metal mining companies. However, for those considering investing in commodities, experts advise entering the market at the right time, which is to say when prices are advantageous, in order to avoid as much risk as possible.
The uncertainty surrounding the economy in the wake of the U.S. presidential election is creating a high level of instability in the financial markets, with prices of gold and crude oil at lows that haven’t been seen in months. This presents a great opportunity for investors who are willing to take the risk. With a few weeks to go, though, until Trump is in the White House, there is time to monitor the conditions of the market before investing.