Binary Index Trading - Informational Articles

Regularly updated information, news, current affairs, advice & tips relating to online binary index or options trading on intraday markets from the World's No.1 Index Trading Alert Provider.

Gold Price Increase As USD Weakens

Gold prices jumped Friday, boosted by increasing weakness in the dollar.

Futures for August delivery climbed 0.75 percent to $1,254.90 per ounce. The gains lifted the precious metal above its 50-day moving average a key technical indicator for the first time since June 15 on an intraday basis.

 

The metal was also on track for its biggest weekly gain since May.
Gold futures since late April with 50-day, 200-day moving average


Gold is range bound between $1,200 and $1,300 and right now we’re in the middle of that range, said Michael Shaoul, chairman and CEO of Marketfield Asset Management

 

I think gold can get to $1,300 and run out of gas, but if it breaks above, then things get interesting.


Gold miner stocks followed the metal higher, with the VanEck Vectors Gold Miners exchange-traded fund (GDX) advancing 0.4 percent.

Rate this blog entry:
Continue reading
541 Hits

Gold Moves Higher after Fed Raises Interest Rate

Gold broke a six-session losing streak, August gold slid to $1,272.70 after settling up $1,275.90 an ounce as consumer data was soft, retail sales and CPI posted declines of 0.3% and 0.1%, respectively. 

The Federal Reserve announces its benchmark rate, which is expected to increase by 25 basis points to 1.25 percent. The Fed is widely expected to raise interest rates by a quarter point to 1.25%, but there's still plenty of anticipation, as analysts will be focusing on the language in the rate statement and as well as the Fed's economic projections. 

The Fed rate statement will be cautious in tone, and dovish regarding additional rate hikes. A dovish message could pour cold water on a rate hike in September and boost gold prices. 

Earlier in the year, three rate hikes in 2017 seemed almost a given, but currently, the odds of a September move are just 28%. There are two key items which could affect gold prices. First, the Fed Economic Projections will detail forecasts of inflation, growth and unemployment, and most importantly, the rate hike path. 

 

With the US economy performing better in the second quarter, there's a strong likelihood that the Fed will not moderate its rate hike projections,which is good news for the dollar. 

Secondly, the markets will be looking for details regarding its plan to lower the $4.2 trillion balance sheet. If the Fed outlines a plan to reduce its holding in H2, the dollar could respond positively. 

Rate this blog entry:
Continue reading
220 Hits