Private Investors have Divided Opinions on Gold Price

Nov. 15, 2013 - PRLog -- Published on November 12, 2013.

51% gold trades were call options in Q3 on Banc De Binary’s trading platform
55% gold trades were call options in October on Banc De Binary’s trading platform
Gold likely to have first calendar year loss in 13 years

Leading binary options trading platform, Banc De Binary (https://bancdebinary.com), reveals that its investors have been divided about the direction of gold’s value in the second half of 2013 so far.

Oren Laurent, CEO of Banc De Binary, explains, “Gold dropped in the first half of 2013 but in the third quarter, we saw that prices started to stabilize. Traders who opened short-term positions have been profiting from the gentle ups and downs in the asset value, as the market was unsure about which direction gold would take.

“On the one hand, bullish investors are concerned about the extent of monetary stimulus worldwide and the potential for a currency crisis as governments attempt to reduce debt and boost the economy, so they are turning to gold which is a safe haven asset. On the other hand, bearish investors expect gold’s downwards path to continue, with stock markets currently at a five year high and the US economy strengthening.”

Banc De Binary allows its customers to open direction based ‘call’ (up) or ‘put’ (down) trades on 200 commodities, stocks, currencies, and indices. Traders profit a set amount from correctly predicting an asset’s direction in their chosen time frame, regardless of the precise amount of change. As such, the opened trades provide a clear indication of whether investor sentiment is bullish or bearish.

From July through September, 51% gold trades on Banc De Binary’s platform were call options, against 49% put options. In October, 55% gold trades on the binary options platform were call options, against 45% put options, indicating a slight increase in bullish sentiment surrounding gold’s price.

Oren Laurent explains the change, “The mood is shifting a little. Traders feel that gold’s price has dropped low enough already this year in the improving financial climate, but they are still wary of the bigger picture and ongoing economic difficulties. So there was a small increase in bullish gold trades in October, but not enough to compensate for the drop we have seen this year. Gold remains set for its first calendar year loss in 13 years.”