“Gold options could be a good option…”

Aside

Inside the Crucible by Adam Van Sambeek

Last Friday’s better than expected US jobs data was the catalyst to finally push gold out of its narrow trading range. Gold prices broke lower, triggering sell stops below $1180 support, as the upbeat data increased the likelihood the Federal Reserve will raise interest rates in the near term. Given that US rate rises and a strong dollar have been on the agenda a long time, I’m surprised by the extent of gold’s reaction, especially as the downward spirals in many currencies could well create risks of their own.

Some market observers looked to China to push gold prices back towards the key psychological level of $1,200, demand has so far been unimpressive, raising concerns that prices have further to fall. I’m imagining that this recent sharp drop in Gold is more technically driven rather than outright negative fundamentals. Although I too wouldn’t rush into Gold here as the charts look damaged, with a possibility we still test $1130. Call me a contrarian, but now seems the ideal time to obtain some low cost exposure to the upside. June Gold Call Options are my preferred method. Limit risk (premium) with unlimited upside potential.

Not all is rosy out there, the US equities have tumbled in the last few days, while the market seems to have ignored news that the ECB has just rolled out a 60-billion euro-per month quantitative easing programme in a bid to prop up its ailing economy. Remember, a lot still depends on the Federal Reserve actually moving interest rates. A major fall in the share market may cause the Fed to hold off, while USD strength could keep inflation so low that the Fed waits even longer before they raise rates.

Get 10% off Casting

For all of July, every 10 units ordered of the same code will receive a
10% DISCOUNT on your unit charges (e.g. order 10 units of the same code and only pay for 9 units).

This promotion applies to any units, be it large or small in size.

Call us now on 0800 500 654, extension 0 and talk to one of our helpful, experienced staff members. Offer begins July 1st 2014 and ends 31st July 2014.

Casting Promotion

 

BLOG

The Seldom Mentioned Joys of Spooling

Current headache… why does the Strand Annealer not spool how I would like it to? ‪#‎problems‬ ‪#‎respool‬ ‪#‎luggage‬ Update: Luckily I have the guru AKA Murray available to help me find a solution. We spent the morning problem solving and now … Continue reading

Fri, Apr 10th 2015

Zinc Oxide Burning Off as a Blue Flame

Pictured is a blue flame caused when Zinc vapour and oxygen reacts when heated to around 1000°C (in combination with other elements such as copper, silver, gold, hydrogen and nitrogen). Zinc (Zn) decomposes into Zinc Oxide (ZnO: zinc vapor and oxygen) … Continue reading

Thu, May 14th 2015