Now is the Opportunity to Trade Gold!

March 18, 2020

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Did you know? That when markets are threatened, investors turn to gold as a safe haven? The big news today is gold! Gold recently rose to near a six-year high to above $1,400, its highest since September 4, 2013. Here are the top influencers for the dramatic rise in prices:

Increased tensions between the U.S. and Iran
The US and China trade war
The global economic slowdown

All of these have contributed to gold’s appeal.

Thanks to the rising geopolitical tensions, investors are flocking to gold as a safe haven asset.

US gold futures rose to $1,410.20 an ounce, up 0.7%.
Spot gold rose to $1,406.83 an ounce, up 0.6% in a fifth straight session of gains.
SPDR Gold Trust the world’s largest gold-backed exchange-traded fund, rose 4.57% on Friday from a day earlier, in its biggest one-day percentage gain since September 2008.
According to the U.S. Commodity Futures Trading Commission, there was a bullish stance by hedge funds and money managers in COMEX, gold, switching to a net long in silver futures and options in the week.

So far for this month, gold prices remained above the $1400 level. But that’s not all The US dollar recently fell to a three-month low against a basket of currencies as investors speculate that the U.S. central bank will lower interest rates next month, all helping gold’s appeal. By now Wham a thought is probably going through your head and you realize that it is a great opportunity to invest or trade Gold CFDs. All that glitters is gold and you want some too! You are right! It’s pretty obvious once you think about it but the most important thing is to choose an online broker that offers the best opportunities to make successful and profitable trades like 24option. But more about them later… Let’s first hear what analysts and market specialists have to say. Experts believe that there are rising expectations that the Fed will cut 50 basis point at their next regularly scheduled meeting in July, which supports gold. Adding that no longer is the question of whether they will cut rates but by how much. Adding that puts the gold bulls back in control. Additionally, analysts believe that the $1,400 level that gold is holding is psychologically important and a positive signal.

US and Iran tensions rise

Following reports of Iran’s Revolutionary Guard shooting down a US surveillance drone, tensions rose between the US and Iran even though Iran said that they were not looking for war. US President Trump had sanctioned a retaliatory strike but called-off the strike at the last minute. Instead, he said he would impose significant sanctions on Iran which are due to take effect on Monday.

To Iranian President Rouhani: NEVER, EVER THREATEN THE UNITED STATES AGAIN OR YOU WILL SUFFER CONSEQUENCES THE LIKES OF WHICH FEW THROUGHOUT HISTORY HAVE EVER SUFFERED BEFORE. WE ARE NO LONGER A COUNTRY THAT WILL STAND FOR YOUR DEMENTED WORDS OF VIOLENCE & DEATH. BE CAUTIOUS!
— Donald J. Trump (@realDonaldTrump) July 23, 2018

Here’s the deal: Experts see that investor’s appetite for a safe haven asset was probably stirred up as a result of the US-Iran tensions. Additionally… Aiding the uptrend in the gold price also is the US-China trade war. And picture this: Since 1 May, gold has gained around at 9%!

U.S. and China Trade

Markets are now focusing on the upcoming G20 meeting in Osaka, Japan and whether there will be any progress between the Trump administration and the Chinese counterparts on the trade war. And this is the possibility… Any continued drama between the two could help push gold higher!

US Federal Reserve

Investor’s bullishness in gold came after the US Federal Reserve and the European Central Bank stance that they were open to ease policies with rate cuts due to the global economic slowdown. Bets are that this could happen as soon as next month. This has made the demand for gold likely to increase. Here’s our analysis: The US dollar’s weakness and the massive inflows into the ETF together with the heightened tensions between the US and Iran are supporting gold. There’s more… The $1,400 level that gold is holding is psychologically important and a positive signal. As if that’s not enough The gold rally has also helped to push the price of silver up! The gray metal climbed 0.1% higher to $15.37 per ounce while platinum was up 0.9% at $813.82. Additionally, there was also a rise in palladium gaining 1.1% to $1,516.03 an ounce.

Silver: The undervalued asset

There are signs for silver to perform. It is an undervalued asset and that for years it has been consolidating. Now with the speculation that the Fed is more inclined to cut interest rates, this will entice traders’ interest in buying and investing in silver. In fact: Some traders are more bullish on silver than gold! Why is it so? There are traders who believe that gold is rising because of uncertainty and this is due to the expectations of a Fed rate cut. And if this happens, then silver will outperform gold. In an interview with Bloomberg, Division Director at Macquarie Bank, Martin Lakos said that there is more speculative money shifting into bullion as a result of the recent weakness in the U.S. dollar. He added that this suggests that these factors have more upside than downside for gold forecasting that by the first or second quarter of next year, the price of gold can reach as much as $1,450. Now, get this… The first thing to do is to sign-up with 24option. They are one of the forex/CFDs brokers that has been around for a long time. They have built up a strong reputation amongst traders of being reliable, safe and offer traders all the financial tools necessary to make successful and profitable trades.

Gold CFDs trading at 24option

Here are some compelling reasons to start trading gold CFDs with 24option:

The offer a suite of trading platforms which includes their new enhanced Scipio, MetaTrader4 and all the MT4 apps with easy installation on mobile devices:
- Apple’s iOS
- Google’s Android
They all come with advanced financial tools and graphs, alerts, daily financial news reports and more.
Extensive choice of over 150 underlying assets of commodities, stocks, indices, currency pairs and the most popular cryptocurrencies to trade.
Customer service available 24/7 via live chat, phone or email.
A low minimum deposit of $100.
Regulated and authorized by the IFSC and CySEC (for your safety).
A demo account that is available for 1 week which comes with $10,000 virtual funds to practice trades before trading with your own money.
Educational resources with webinars, videos, e-books and more so that you can get the most out of trading CFDs.
Highly competitive spreads

Bottom line?

Don’t let this opportunity to trade or invest in gold or silver pass you by. Remember: Gold is a smart and defensive way to diversify your portfolio and 24option can provide you with a great trading experience! Visit 24option Site

Risk Warning: Trading forex and/or CFDs involves significant risk of loss. CFDs are leveraged products and it is possible to lose more than your initial investment.