In March 2008 gold peaked at more than $1,000 an ounce after having risen for much of the last year, but by early June it had fallen as low as $875 as the dollar strengthened and investors were gradually tempted back to the greenback.
Thanks to its ability to maintain relative value and act as a hedge to currencies and other instruments, gold is seen as a key counterweight for the dollar, following its trends in the market.
Whatever the future for the yellow metal, spread bettors are well placed to take advantage of potentially volatile markets in the coming months.
Minimum deal size now £1 per point
With IG Index you can take a position on the price of gold regardless of its direction, going long or short based on your own judgements.
And we've made it easier for you to trade gold by reducing our minimum deal size to just £1 per point, meaning you are able to speculate and try more bets on the precious metal without having to increase your risk.
Added protection
To reduce risk still further we offer a full range of Stop and Limit Orders, along with our new Trailing Stops, which track the market in a profitable direction for you.
Our Guaranteed Stops allow you to protect yourself should the market move suddenly against you, which is particularly useful for volatile markets. The extra charge for this type of protection is in the form of a Controlled Risk premium, which is added to your opening price.
Our Spot and Forward markets on Gold and other precious metals such as Silver, Palladium and Platinum are available 24 hours a day, allowing you to trade whenever you need.
See an example of how to bet on the price of gold and find out more about our wide range of Commodities.
Updated: 19/06/08
The above comments do not constitute investment advice and IG Index accepts no responsibility for any use that may be made of them.