Silver Price: Binary Trading Forecast for Oct 8
The last few weeks have seen a steady drop in the price of silver and on Monday it reached a low of $16.765 per troy ounce. However on Tuesday the price began to climb again and at one point reached as high at $17.555 per troy ounce.
Prices had fallen to a four year low on October 3rd but they have been recovering as investors become cautious ahead of Wednesday’s publication of the minutes from the latest Federal Reserve meeting. Whenever there are nerves about the dollar precious metals are seen as safe haven investments.
However, in all likelihood the minutes will contain positive data about the US economy. If it also hints towards an earlier than anticipated rise on interest rates by the Federal Reserve then the dollar will certainly begin to strengthen. This in turn will cause the price of silver to drop, dollar backed assets become unappealing to investors when the dollar is strong. Therefore a put option is an advisable trade.