Gold Price: Binary Trading Forecast for Oct 8
The dollar has been steadily gaining in strength which in turn has been causing the price of gold to drop. On Monday it fell as low as $1,186.20 per troy ounce but on Tuesday began to climb and was soon back above $1,200.
The price began rising as investors looked ahead to the publication on Wednesday of the Federal Reserve’s latest meeting minutes. While there has been good data from the US in recent days, investors are always cautious prior to announcements from the Federal Reserve.
It is likely that the minutes will reinforce expectations that the Federal Reserve will raise interest rates sooner than previously though. If this is the case the dollar will strengthen and the price of gold will immediately drop. As a result it is probably sensible to buy a put option as there will be an immediate market reaction.