The slide from the summer high has seen GOLD go down $120 per ounce in four months. This nearly straight down move had an intermittent bounce on election eve that quickly evaporated as stock markets stabilized hereafter…
An interesting level of perceived economic certainty from possibly the most uncertain president elect is an ideal situation to position with limited risk Binary Options.
The list of potential events that could disrupt this stock market euphoria is long…executing the presidential plan will present an obvious challenge that may have been overlooked with optimism.
Safe havens like Gold and Treasuries have suffered, temporarily, on this equity market melt up. Rates have risen sharply and “good as Gold” has gone down 10%.
Gold fell below $1160 Monday marking new relative lows as a possible last selling gasp before rebounding to close near unchanged.
Equally important for a bullish bounce was that no new high were posted in volatility suggesting sellers may be tiring…only time will tell. This bullish divergence can be a signal that the slide has stopped.
IF a bottom is in, out of the money Binary Options could be bought each week for an eventual short covering bounce back. A small dollar investment could position for any uncertainty …
In the near term, buying a binary strike near the $1160 extreme lows can be a winner on a Gold move higher, sideways or even down if above the strike at expiration or a cheaper initial strategy with a higher return using a higher strike level
The only thing certain in our markets is uncertainty…as a result Gold could shine at any time.