Gold (GC=F) June futures opened at $4,842.40 per troy ounce on Tuesday, 0.3% above Monday’s closing price of $4,828.80. Gold slipped in early trading, moving down to $4,801.80 as of 6:40 a.m. ET.
Silver (SI=F) May futures opened at $79.85 per ounce on Tuesday, down 0.2% compared with Monday’s closing price of $80.04. The price of silver fell to $78.96 by 6:40 a.m. ET.
Gold and silver prices continue to show resilience as the world waits to see if peace talks can progress before President Trump’s ceasefire deadline expires. With such market uncertainty, traders continue to rely on gold as an essential safe-haven investment.
But with Brent Crude (BZ=F) down to just over $90 a barrel this morning, and with the U.S. Dollar Index (DX-Y.NYB) showing impressive gains early today, it’s unclear how much longer gold will hold above the $4,800 threshold, and silver above the $80 mark.
The primary concern for traders is that the Iranian conflict increases the inflation risk in the U.S. A prolonged inflation cycle could prompt the Fed to raise interest rates, which tends to reduce pricing and demand for gold.
Learn more: Who decides what gold is worth? How gold prices are determined.
The opening price of gold futures on Tuesday was 0.3% above Monday’s close. Here’s a look at how the opening gold price has changed versus last week, month, and year:
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One week ago: +1.5%
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One month ago: +3.3%
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One year ago: +44.9%
The precious metal’s one-year gain was 95.6% on Jan. 29.
24/7 gold price tracking: Don’t forget you can monitor the current price of gold on Yahoo Finance 24 hours a day, seven days a week.
Want to learn more about the current top-performing companies in the gold industry? Explore a list of the top-performing companies in the gold industry using the Yahoo Finance Screener. You can create your own screeners with over 150 different screening criteria.
Silver (SI=F) May futures opened 0.2% lower than Monday’s closing price. Here’s a look at how the opening silver price has changed versus last week, month, and year:
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One week ago: +3.9%
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One month ago: +11%
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One year ago: +144.6%
Learn more: How to invest in silver: A beginner’s guide
Gold has the same high-level risk as any investment: You could lose money. And, as with other investments, a loss on gold can materialize in different ways. Understanding the potential outcomes is the first step to managing your risk when investing in gold.
According to gold experts, would-be gold investors should understand these four risks:
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Price
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Speculation
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Opportunity cost
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Fraud
Today, we’ll focus on the first two: price and speculation.
Learn more: How to invest in gold in 7 steps
There is a price risk for investors who buy gold when the metal is nearing record high prices. “Buying high to hope for short-term higher is a tough strategy,” said Darrell Fletcher, managing director, commodities at Bannockburn Capital Markets.
Despite the high prices, there are positive dynamics in play for the precious metal. Fletcher pointed out that gold is recovering from decades of low prices, and it’s an increasingly popular diversification asset for central banks and individual investors.
The right expectations, a long timeline, and an appropriate allocation can limit your pricing risk. “Gold should not be seen as a driver of supercharged returns — it’s there to act primarily as a stabilizer in a diversified portfolio,” explained Alex Tsepaev, chief strategy officer of B2PRIME Group.
If you are interested in learning more about gold’s historical value, Yahoo Finance has been tracking the historical price of gold since 2000.
Thomas Winmill, portfolio manager at Midas Funds, encourages investors to view positions in gold bullion, coins, and ETFs as speculative. Gold is a commodity, and “commodity prices are dependent on macroeconomic, political, industrial, and financial factors that are unpredictable, and in some cases, unknowable.”
Despite its recent performance, gold is an unpredictable asset. Keeping that in mind when making trading decisions could protect you from over-exposure and unrealistic expectations.
Learn more: Thinking of buying gold? Here’s what investors should watch for.
Whether you’re tracking the price of gold and silver since last month or last year, the price of gold and silver charts below show the precious metals’ change in value.
More silver coverage from the Yahoo Finance team:
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: finance.yahoo.com
