Gold Price Plunges 2% As Dollar Strengthens: Is Gold A Good Investment Now?

When discussing investment options, gold has consistently remained a favored choice due to its stability and inherent value. Gold has experienced an impressive year so far, up by over 33% year-to-date. Throughout 2024, the price of gold has consistently shattered records and attained unprecedented all-time highs, largely driven by economic unpredictability, global instability, and heightened investor interest, thereby reinforcing its appeal as a dependable investment in tumultuous times.

Despite gold outperforming several other assets in recent months, it experienced its worst weekly performance in over five months subsequent to Trump’s reelection on November 5 for a second non-consecutive four-year term. His victory poses new uncertainties for the Federal Reserve, as the central bank weighs the possibility of interest rate reductions amidst inflation approaching its 2% target.

This price drop raises an intriguing question: Is now the right time to buy into gold? In this article, we will explore and find the right answer.

BTCC, one of the longest-running crypto exchanges in the world, supports Tokenized Gold Futures trading with a leverage up to 150Χ, users who are interested in gold trading currently can use USDT to trade gold commodity on BTCC without opening an account with other traditional exchanges.

＼Trade On BTCC With 10 FREE USDT!／

Table of Contents

Latest News & Updates on Gold

What Affect the Price of Gold?

Should Buy Gold as the Price Plunges?

How to Invest in Gold?

How to Buy Gold on BTCC?

Conclusion

Latest News & Updates on Gold

Gold

Key data points

(Data from OANDA)

On November 11, gold prices declined by over 2%, weighed down by the persistent appreciation of the US dollar and the extensive implications of Donald Trump’s victory in the U.S. presidential election on fiscal policy and potential interest rate reductions.

As of 1:54 p.m. ET (18:54 GMT), spot gold dipped 2.5% to reach 2,617.96per ounce. Meanwhile,U.S. gold futures settled 2.9% lower at $2,617.70.

The dollar index rose 0.5% to its highest point since early July, rendering gold less appealing to buyers holding non-USD currencies. Notably, last week, the index soared by more than 1.5% to 105.44 in the wake of Trump’s electoral victory announcement.

“The market’s attention has focused to the second-order effect since the red wave,” said Daniel Ghali, commodity strategist at TD Securities.

“The likelihood of tariffs being imposed relatively early on into Trump’s presidency and the resulting strong demand for dollar that is creating. Stronger dollar is weighing on gold prices for the first time in months because it’s also associated with increasing odds that the Federal Reserve might delay its easing cycle.”

＼Trade On BTCC With 10 FREE USDT!／

What Affect the Price of Gold?

Gold price is volatile depending on many factors. Next, we will explore the major factors affecting gold price.

• Economic uncertainty: gold plays a pivotal role in the realm of finance and investing as it is a formidable hedge against such unpredictability. It showcases its prowess in generating substantial returns for investors, particularly when concerns over rising inflation and declining interest rates arise, making the holding of cash less favorable.
• Fiscal policy: the pricing of gold in US dollars establishes an inverse relationship between the commodity and the currency. Announcements and expectations regarding hikes in US interest rates bolster the dollar’s strength, exerting pressure on gold prices. Conversely, discussions and anticipations of lower rates can weaken the US dollar, resulting in an increase in gold prices.
• Geopolitical risks: geopolitical risks further elevate gold’s status as a safe haven. During times of global unrest, such as political turmoil, trade disputes, and natural calamities, investors flock to gold, pushing its prices upward. The yellow metal has witnessed a notable surge in price globally in 2024, amidst heightened geopolitical tensions.
• Investor sentiment: investor sentiment also plays a crucial role in determining gold’s price movements.  Market participants’ perceptions of gold as an investment can spark speculative trading, leading to short-term volatility.  Positive outlooks on gold drive prices up, while a bearish sentiment surrounding the precious metal can cause prices to decline.

BTCC, one of the longest-running crypto exchanges in the world, supports Tokenized Gold Futures trading with a leverage up to 150Χ, users who are interested in gold trading currently can use USDT to trade gold commodity on BTCC without opening an account with other traditional exchanges, click the button below to buy gold now⇓.

Should Buy Gold as the Price Plunges?

Based on current market dynamics, the answer is yes — now could be an excellent time to add gold to your portfolio. Historically, gold has demonstrated resilience and a propensity for value appreciation over time, particularly during phases of economic unpredictability.  Analysts foresee continued demand pushing prices upwards, with some projections anticipating a reach of $3,000 per ounce in the upcoming months.  This renders current prices a tempting buying proposition for both novice investors and those aiming to augment their gold holdings.

Beyond the huge potential for price growth, gold serves as a unique niche in a well-balanced portfolio, renowned for its diversification benefits that shield against downturns in other markets.  During economic crises or inflationary eras, gold frequently outperforms stocks and bonds, a trait that is invaluable in today’s environment marked by lingering inflation concerns, potential interest rate adjustments, and global tensions that have sparked volatility across various asset classes.

Investing in gold now also serves as a future hedge against inflation.  Although the inflation rate currently aligns with the Federal Reserve’s 2% target, the possibility of an unexpected resurgence in inflation persists.  In such a scenario, the costs of goods and services escalate, diminishing the purchasing power of cash, whereas gold tends to maintain its value.  This hedging capability has heightened gold’s appeal in recent years.  Thus, if you are concerned about safeguarding your assets from future inflation-related issues, incorporating gold could be a strategic decision.

Moreover, central banks are enhancing their gold reserves, which could stimulate demand and further stabilize prices.  Central banks have consistently purchased gold, both as a hedge and to diversify their reserves.  Additionally, the industrial sector’s demand for gold, notably in electronics and medical devices, remains robust, fueling further demand.  These factors collectively point to a favorable long-term outlook for gold, making the current juncture an advantageous time to invest, especially at attractive prices.

Click the button below to buy gold now⇓

How to Invest in Gold?

Once you’ve made the decision to invest in gold, the subsequent question that arises is: Which type of gold asset is the most sensible choice? Here’s what you may want to consider investing in now:

• Physical gold: Gold bullion bars and coins offer a tangible way to own gold, independent of the market fluctuations of other investment options. The security that bullion provides, being a physical item that you can hold, is unparalleled.  However, the costs associated with storing and insuring physical gold can be substantial.
• Gold ETFs: For investors seeking flexibility and convenience, gold exchange-traded funds (ETFs) are a popular alternative.  Gold ETFs enable investors to purchase shares that represent ownership in a specific quantity of gold, without the hassle of managing or storing physical gold.  They offer liquidity and generally come with lower costs compared to physical gold.
• Gold mining stocks: Investing in gold mining companies is another option that provides exposure to gold’s price performance without the need to directly purchase the metal.  When the price of gold rises, mining companies typically experience increased profits, which can translate to higher stock prices.  However, it’s worth noting that gold mining stocks can be volatile, as they are influenced by factors such as production costs and other operational challenges.

How to Buy Gold on BTCC?

BTCC currently supports tokenized gold  futures trading with a leverage up to 150Χ, users who are interested in gold trading currently can use USDT to trade gold commodity on BTCC.

The following sets forth the detail guidance on how to trade tokenized gold futures on BTCC.

Step One: go to the BTCC homepage and log in to your BTCC account. If you do not have an account, you need to register first.

Step Two: on the BTCC official homepage, choose “Deposite” , and then fund your account with your preferred method (fiat deposit, crypto deposit or convert).

Step Three: go back to the BTCC official homepage, choose “Futures” -“USDT-M Perpetual Futures Contract”-“Tokenized Stocks&Commodities”-“GOLDUSDT”.

You can also directly click the button below to enter the gold order page.

Step Four:go back to the BTCC official homepage, choose “Futures” -“USDT-M Perpetual Futures Contract”, and find the crypto trading pair.

• Market Order: users place orders at the best price in the current market to achieve fast trading.
• Limit Order: Limit orders are a type of order to buy or sell futures at a price more favourable than the market price. When you buy at a price lower than the market price or sell at a price higher than the market price, the order will be in the form of a limit order.
• SL/TP Order: SL/TP orders are a type of order to buy or sell futures at a price less favourable than the market price. When you buy at a price higher than the market price or sell at a price lower than the market price, the order will be in the form of a SL/TP order.

Step Five: adjust the leverage multiple.

Please keep in mind that operating leverage carries the risk of liquidation. Leverage should be adjusted based on your financial status and risk tolerance.

Step Six: choose the lot size and set the SL/TP price .

Step Seven: after setting the basic data information, users can choose to buy (open long) or sell (open short) after entering their ideal price. Traders should remind that the price cannot be higher or lower than the highest buying price or lowest selling price of the platform.

Step Eight: click the buy or sell button, and the tokenized gold  futures contract order is completed.

Conclusion

Ultimately, the decision to purchase gold should align with  your financial objectives, risk appetite, and investment approach. However, the recent decline in gold prices presents investors with a unique opportunity. Considering its impressive performance this year and promising long-term prospects, the present moment could be a strategic time to acquire gold at a reduced price point.

Irrespective of whether you opt for physical gold, gold ETFs, or gold mining stocks, each category of gold assets offers distinct benefits that can enrich your portfolio. Furthermore, gold continues to be a prudent choice for numerous investors due to its ability to hedge against inflation, provide diversification, and function as a safe haven during times of uncertainty.

＼Trade On BTCC With 10 FREE USDT!／