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Tuesday, November 8, 2011

Europe Debt Risk Declines Price of Gold after 7-week rally

One of the most traded commodities using binary options is the precious yellow metal known as gold. Aside from having applications for jewelry and circuits, it is also used as a reserve for countries and high-net-worth individuals. When you buy a binary option of gold, you can expect that it will now be in a downward heading slope or a long slow decline.

Check out this article that I came across on Bloomberg about the price of gold.

Gold Declines After Reaching 7-Week High on Europe Debt Risk

click title to view article in full

Nov. 8 (Bloomberg) -- Gold dropped before a parliamentary vote in Italy that will show whether Prime Minister Silvio Berlusconi has enough support to stay in power and implement austerity measures.

Bullion for immediate-delivery fell as much as 0.3 percent to $1,790.38 an ounce and traded at $1,792.68 at 1:14 p.m. in Singapore. The metal touched $1,798.65 yesterday, the most expensive since Sept. 21. Gold for December delivery traded little changed at $1,793.50 on the Comex in New York.

The Chamber of Deputies will vote at 3:30 p.m. in Rome on a routine report on last year’s budget plan that will reveal whether Berlusconi retains a majority in the 630-seat house. Berlusconi denied a report he would step down and pledged to call a confidence vote next week to pass an austerity package that aims to boost growth in the nation’s economy and lower the 1.9 trillion-euro ($2.6 trillion) debt.

“The situation in Italy doesn’t look too good,” said Natalie Robertson, analyst at Australia & New Zealand Banking Group Ltd. in Melbourne. “Even though they’re going to run a primary surplus this year, their debt to GDP ratio is still 121 percent and the cost of borrowing more money is increasing.”

Read the article in full on Bloomberg

As you can see, domestric and foreign policies are making a difference in binary options trading and understanding these fluctuations is critical in have a good prediction compass for when you trade binary options. 

A check of gold prices this morning on OptionsClick.com showed that gold was moving up in price, so perhaps the actually behavior for binary trading is the elusive obvious.

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