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Gold’s Speculative Shine

MaxOptions - Gold Options

Risk aversion has certainly helped one asset Can be stocks, commodities, indexes or Forex currency pairs. More in a dramatic fashion the past month. Gold is trading not only at highs for the month and year, but it is also approaching a critical resistance When investors and traders use the term resistance When investors and traders use the term resistance When investors and traders use the term resistance, or resistance level, they are often speaking abo... More , or resistance level, they are often speaking abo... More , or resistance level, they are often speaking abo... More level not broken in earnest since 2013 and that is the $1400.00 USD The USD The USD is the official currency of the United States of America. It is the largest reserve currency... More is the official currency of the United States of America. It is the largest reserve currency... More per ounce ratio. The precious metal is in uncharted territory not seen since 2014. If it is able to maintain its current levels investors might speculate that gold can go higher.

With questions being raised about Central Banks and their policies, bond yields that are essentially zero to negative, economic activity that is stagnant and a global political landscape rife with unknowns, Gold is finding its way into the portfolios of those who believe in hedging their risks.

Most commodity prices continue to be under pressure. Crude Oil and other physical resources are not seeing industrial demand to help create better values, but Gold is seeing a combination of investors and speculators paying attention. The problems via the FX markets which are shadowed by the Brexit, the inability of the Federal Reserve The Federal Reserve The Federal Reserve The Federal Reserve is the Central Bank of the United States of America and sets the monetary policy When used by traders and investors monetary policy When used by traders and investors monetary policy When used by traders and investors monetary policy usually refers to Central Bank policy concerning ... More usually refers to Central Bank policy concerning ... More usually refers to Central Bank policy concerning ... More ... More is the Central Bank of the United States of America and sets the monetary policy... More is the Central Bank of the United States of America and sets the monetary policy... More to act, and a Japanese government which might not be able intervene in a capable manner have all created more reasons for the allure of Gold grow.

The uncertainty in the marketplace has caused a cascade of investors to look at gold not only as a tool for preservation, but as a speculative vehicle again. The gains made in gold this past month have been solid and the precious metal has achieved a good climb in value since the 2nd of June when it was trading at 1212.00 USD an ounce. Gold essentially started the year at 1060.00 USD.

The metal was almost given up for dead toward the end of 2015 when it hovered near lows, but Gold has pulled off a remarkable comeback as fears of the unknown have buoyed its value. Inflation In economics the term inflation In economics the term inflation In economics the term inflation refers to price values that are rising on a regular basis in which t... More refers to price values that are rising on a regular basis in which t... More refers to price values that are rising on a regular basis in which t... More continues to be stagnant, but a combination of economic uncertainty and political intrigue has caused helped fuel this buying spree.

Equity Indices are finding tough ground, the bond markets are facing criticism, and concerns that mismanagement by Central Banks could turn economies that are in the doldrums and fighting stagnation The term stagnation The term stagnation The term stagnation in economics means a period of time in which an economy is achieving little grow... More in economics means a period of time in which an economy is achieving little grow... More in economics means a period of time in which an economy is achieving little grow... More into economies fighting stagflation is an emerging sentiment. The Brexit ramifications and the architecture that will be needed to create a good working framework for the future is going to take a lot of time. And there is the rather large issue of a Presidential election edging closer from the United States and the possibility that its ugly campaign could also hurt investor sentiment.

So where does Gold go from here?  Will its value fall off a sharp edge and kill off the speculative bull A term used that indicates a market or a person believes an asset class will rise because of a prepo... More market that has sprung to life, because economic data continues to show a lack of inflation? Or will the price of the metal continue to find support When investors and traders use the term support When investors and traders use the term support When investors and traders use the term support, or support level, they are often speaking about a p... More , or support level, they are often speaking about a p... More , or support level, they are often speaking about a p... More as smart money edges into the commodity based on uncertainties that appear to be growing and causing nervous market sentiment?

There are absolutely no guarantees in the world of trading, but the buying trend that Gold is experiencing looks like if may have strong legs and the ability to continue. If Gold can break the 1400.00 USD resistance mark and sustain itself above that level its ride could really take on a speculative flight not seen since 2012 and 2013.