Considering the unlimited bond-buying by the FED, it is quite obvious that the dollar value would plunge further in near future while the gold would appreciate in its value.
Gold has now become both of a frequently-traded commodity and as well as a long-term saving that would yield considerable amount of profit in either case. Since I started trading, there’s only one asset that has not lost its appeal to all traders. A significant amount of layoff along with foreclosures of homes, bankruptcy of businesses, the safe haven for the investors was only gold.
After the announcement of QE3 by the Fed chairman Ben Bernanke, the U.S dollar experienced a sharp decline in its value, while the Gold tested its 2012 highs of $1791.
Gold is currently hovering above 1600 level, where sustainable move above 1612 would confirm its bullish bias. Therefore, whatever savings people have, it would certainly be converted into something that would at least beat the inflation at a future stage and gold is the only thing that can do so for them in a much better way.
Plus the most important aspect to consider here is that gold contributes to more than 73% of the total foreign reserves of the United States, which means that even if the value of greenback depreciates the country would still be enjoying the inflated gold as their foreign reserves would be much greater than before.
Whether the economy is doing well or not, Gold has always been the go-to “safe” asset of everyone. Gold binary options and Forex trading went online and in reach of a small investor too where investors could also trade in Gold, where many thought of it as a safe haven. No doubt, gold deserves to have its percentage increased in your investment portfolio as its next long-term targets would be 1823 and 1850 levels once it breaks the 1791 mark. Consequently, adding up gold in your investment portfolio from now isn’t that bad an idea, which would certainly reap you profits in near future.
Especially when the economy is not performing well, traders tend to lean on the haven asset gold. Moreover, gold fell recently but it couldn’t sustain below 1560 level, as there is strong buying present over that price level since the banks and other institutions are buying gold at dips. Different trading platforms may come and go but, Gold will definitely be a permanent fixture in the binary trading world.
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