Gold is currently near a five year low, and that’s good news for those that want to go long on the commodity. Gold has always been considered a safe way to hedge your other trades and investments because it is universally regarded as having value, and there’s little question that this will continue into the future. It has international demand, it has had this for centuries, and even as currencies come and go, gold has proven to be reliable.

Gold has had a rich history of being a stable place to put your money, and it has shown that it tends to grow in value, although sometimes at a rather slow pace. Now is one of those slow times, and the fact that it’s at a recent low is good for those looking to enter the market. However, buying gold and stockpiling it in a basement safe isn’t the only way to make money with gold. There are futures contracts that can be bought and sold, and you can play off of the price of gold with binary options. While buying bullion is perhaps the most trustworthy way to make money with gold, it is also the most expensive way. A single gold bar of 16 ounces will cost you over $16,000. For many, that’s a huge investment for something that could take years to see a worthwhile return upon.

The other side to this is the fact that the U.S. dollar is currently in high demand. The dollar and gold often run counter to each other, with gold having an upward trend overall, still, but when the dollar moves, gold’s reaction tends to be quick. The fact that Japan recently had a trading holiday, and that Europe doesn’t have much going on lately has also helped the dollar to take dominance. As this cools off, expect to see gold slowly move back upward. This is especially useful information for those that trade gold short term as playing gold’s immediate movements off of what the dollar does can be an easy way to add a few extra bucks to your profit number. Using binaries to help here is a good idea, especially for smaller traders, as they are cheap to trade, have a low entry point, and there’s not a ton of risk involved for these two reasons.

At $1,089 per ounce, gold has lost a lot of value over the last few years. But, gold futures are still optimistic. If you look out two years from now, gold is expected to go up by almost $200 to $1,146. That’s still a low number, but that’s a good thing. If gold does go up to what it’s probably actually worth, then getting a contract at this number will almost guarantee a profit. There’s a very good chance that gold will go up over $1,200, although there’s not a good timeframe on when this will happen, especially as the U.S. dollar keeps staying as strong as it has been. For more information on this, keep an eye on the euro as this is the main competitor to the dollar. However, the drawback to this method is that futures are not easy to access for most as they are about as expensive in most cases as bullion. You can buy and sell contracts before they expire, but this entails a lot of risk sometimes. This is why the average trader that is interested in gold should look into binary options as an alternative method.

Also, remember that watching dollar technical analysis might not be the best method for this. Yes, the dollar and gold are related, but technical data is too minute to have any impact upon gold in most instances.