Commodities Binary Option of the Day: Gold A Good Weekly Put Option

As the dollar has strengthened over recent weeks the price of gold has been falling and on Tuesday it hit a 10 month low of $1,204.30 per troy ounce.

The most recent drop in price came as investors looked ahead to the release of key U.S. data later in the session. It is expected that the data will show that the US economy is in good health and that the Federal Reserve will stick with its plans to raise interest rates early next year.

The US employment report is due on Friday and it is also expected to bring positive news. All this economic data is likely to further strengthen the dollar which in turn will lead to further drops in the price of gold. As a result it is fairly safe to take a weekly Put option on gold.