Binary Gold options are going down after reaching the resistance area around 1630. The wide range trading is expected to continue at least to Fridays’ payroll data. First intraday support is expected at 1585, followed by 1550. Binary investors could profit from the expected downside correction with short-term “put” and “touch down” options. On the opposite direction above 1635 binary gold could receive resistance at 1660 which coincides with 200-day SMA. Break above the latter will put the target on the psychological 1700.
On fundamental side, the precious metal has the potential to advance as an inflation hedge following the market expectations of another round of stimulus and rate cuts by major central banks. Tomorrow, in case of weak non-farm payrolls report, gold will probably rise on speculations that Fed would launch QE3 will increase. However, after extending the “Operation Twist” last month there is less chances of boosting stimulus any time soon.
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.