Do Binary Options Traders Have Clearer Direction with the Gold Price?

There are some interesting developments taking place in the geopolitical arena. For starters, President Trump threw the cat among the pigeons vis-à-vis the Syrian crisis. Trump shocked the global community by reacting swiftly responding to a Syrian chemical weapons attack on civilians. He authorized the U.S. Navy to strike the airfield with 59 cruise missiles, while he was meeting the Chinese president Xi Jinping at Mar-a-Lago in Florida. On Friday, 7 April, gold and silver rallied in the aftermath of the Tomahawk cruise missile strike. As is so often the case with bellicose geopolitical activity, gold becomes the go-to asset for traders. Binary options traders wasted no time piling into commodities like gold and silver which spiked 1% on Friday. The US military action was in response to a purported chemical weapons attack on Syrian civilians. While gold rallied, silver also moved sharply higher (+1.02%) with the futures market showing a price of $18.432 per ounce. As often happens, WTI crude oil and Brent crude oil prices rose accordingly. Middle East unrest is often a catalyst for gold price surges, and that’s precisely what is happening.

Binary options gold trading tip: Developed markets set to be impacted by inflationary pressures

The CEO of Sharps Pixley, Ross Norman, had this to say about the gold price and inflation: ‘… Prospects for inflation are rising all the time… Gold doesn’t work in lockstep with the inflation rate when it goes from 0.5% to 1%, when it gets to 3% you get a step change.’ This sentiment is shared with many commodities analysts who are seeing the inflation rate trending higher in the US. The multiplier effect of inflation on the gold price is evident since the 1970s. Recall that the oil price-linked inflation surge in the 1970s led to a spike in the price of gold. From 1980 onwards, the gold price shrank dramatically in Reagan-era USA, and the turnaround has only started taking place since 2000.