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Gold Now Traded Based on the Australian Dollar (AUD) with IFC markets
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Gold Now Traded Based on the Australian Dollar (AUD) with IFC markets
Mar 22, 2024 2:17 AM

The broker is known for offering investors the option to trade the precious yellow metal against other commodities such as oil and silver through its Gold instruments.

Apart from AUD, the new PCIs can be used to trade against two other currencies, which include the Japanese Yet and Chinese Yuan. The PCIs’ most attractive feature is that it allows investors to pick the most preferable markets while taking into consideration the variables that affect gold prices.

Gold prices are foreseen to fall to a multi-year low following the U.S. Fed’s reduction of its stimulus program budget and contemplation of higher interest rates. Gold has fallen to an all-time low at the beginning of 2014, and analysts say that it would likely go below the $1,000 mark, putting pressure on a number of Australian gold producers.

In an article by BullionVault, it was stated that gold producers in 2013 who exceeded the operational costs of $1,000 per ounce faced severe difficulties. A price of less than $1,000 next year would definitely pose a problem for gold producers unless a new technology that would allow miners to extract more gold at lower costs would be discovered.

The metal has fallen from more than $1,300 an ounce in August to around $1,220, and CMC Markets chief strategist Michael McCarthy says that it may go down the $1,180 mark within October.

“With the fundamentals running against it and no sign of inflation, it's hard to see what will hold it and we could be looking at new multi-year lows,” McCarthy said.

The main reason why gold prices pushed up in recent years was because of the Fed’s aggressive bond buying program. Now that it has loosened up under Yellen’s leadership, expectations of higher interest rates have made investors bearish toward gold.

The wider choice of instruments provided by IFC Markets will expand the opportunities for trade in Australia, Japan, and China. While gold is fairly stable against the Japanese Yen and Australian Dollar, it may not be the same with the Chinese Yuan due to new policies in the country that were put into practice as a consequence of an economic slump.

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