news The economic activity is linked tightly with the gold price. Central Banks usually own the gold of the world and their main job is fighting inflation. Managers of these Central Banks know the fact that speculators will see the gold price increase as an inflation sign. When they see in the gold futures news that the gold market goes in the wrong direction, these banks will begin to sell some of their gold, causing gold prices to fall.

When the gold price reached the price per ounce of $1200, central banks intervened. Even though central banks tend to intervene when the gold market rallies, the price of gold can still rally for extended time periods. The fact is that advances of gold prices aren’t the same as they used to. The gold futures market can be quite tricky.

The biggest producer of gold in the world is South Africa and they have around a quarter of the total production. The next countries as far as gold production goes, are Russia, Canada, Brazil, Australia and US. The gold futures news like political situations can influence the market and the prices considerably. When there are political crisis, gold tends to increase in price.

Inflation is also a cause of inflation. When the inflation is high, investors that are wealthy will generally pick gold as an investment. The management done by central banks on the prices of gold has reduced the influence of inflation. These days, the USD and gold prices generally go in opposite directions.

Gold is traded in many exchanges from all over the world. NYMEX (Mercantile Exchange of New York) is the most popular one, with CBOT (Chicago Board of Trade) coming in second. The requirements of gold futures for CBOT are quite low, so retail traders find gold future trading more attractive.