It looked like short sellers were going for gold this weekend, but it’s since started to recoup its losses, which leaves us wondering which way the price of the yellow metal will go next.
Gold got a hammering on Sunday when the price fell by as much as 5.5% in what is known as a “flash crash”. Since then the gold price has started to recover and has recouped more than half the loss by Tuesday.
What will happen next? Should we be bullish on bullion and buy some, or should we be selling gold short in case it goes down again?
How & Where to Buy or Sell Gold Today
Most online brokers let you bet on the gold price going up or down. Here are two of them:
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What is Gold?
Gold should need no introduction, but let’s give it a go in case you don’t know much about one of the most precious of precious metals. Gold has been a symbol and store of wealth for centuries. It used to underpin world currencies like the US dollar and British pound, and in a world awash with fiat currencies, it’s still seen as a safe haven investment and a hedge against inflation. You can buy this commodity in physical form (as gold bars, coins, or jewelry) but it’s easier to trade the gold price virtually via an online broker.
Should I Buy or Sell Gold Right Now?
If you think that the weekend’s flash crash has come and gone, you could consider buying gold or simply betting on a continuing recovery via a contract-for-difference (CFD) or spread bet. If you think that the trend is now definitely down — and the price chart’s recent lower highs and lower lows tell us that it might be — then you can profit from a falling price via the same spread bets or CFDs. Just press the sell button rather than the buy button on your broker’s platform.
Gold Price Target 2021
The gold price could go back to its July 2020 high point of 2036 USD per ounce, which is more than 15% higher than today’s price. Then again, it could eventually go down to where it was five years ago at about 1060, or even as far as its 20-year low point of less than 300 in 2002.