Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

GOLD & OBAMA: A love story

11/13/2012 | 09:33am US/Eastern
Recommend:
0

The President of the United States, Barack Obama and gold linked their destiny. The performance of gold metal escapes from criticism (which is not necessarily the case for the politician) with a gain over the last four years of $ 1000, up 140%.

The reasons are simple: a policy of quantitative easing from the Fed. In addition, Ben Bernanke should be maintained with the re-election of the Democratic candidate.
Proof of this common destiny, the net recovery of gold due to results of the U.S. election (profit of more than $ 40 in the trading session). It must say that investors think clearly still difficult economic situation, promoting the application of another quantitative-easing, real catalyst of the gold market. The downside of this policy is the risk of inflation, monetary trouble which causes massive purchases of gold to protect the assets of investors.

It is generally the policy of low interest rates and "easy" money which promotes regular purchases from investors.


                

Evolution of the gold price per ounce since the first election of Barack Obama
with the consolidation phasis for 16 months around the 200-day moving average.

 

Technically to analyze the gold metal, it should monitor its behavior in weekly data. In fact, the gold contract remains locked in a trading range with a neutral zone as lower limit USD 1580 and recent highs for upper limit at USD 1800. Therefore, all fluctuations are only simple movements around the 200-day moving average and are not real mid-term trends.
Nevertheless, we maintain a positive bias that will materialize with the crossing of upper limit, resulting a new bullish trend towards the symbolic area of USD 2000.

 

Patrick Rejaunier

© 4-traders.com 2012
Recommend :
0
React to this article
Latest news
Date Title
<1m agoDJFrench Unemployment Figure Sets New Record
<1m agoDJBank of Cyprus Boosted by Asset Sales
<1m ago Fitch Affirms SLM 2005-3 Notes
<1m ago Information Architects Launches New Company website
<1m ago CORRECTION - FirstLight Fiber Agrees to Acquire G4 Communications' Assets
1m ago INFORMATION ARCHITECTS : Launches New Company website
1m ago DATANG POWER GENERATION : LD - Connected Transaction & Discloseable Transaction
1m ago RESEARCH AND MARKETS : Global and Chinese Polybutylene(PB-1) Industry Report 2014
3m ago DATANG POWER GENERATION : LD - Resolutions of the Board of Directors
3m ago NanoTech’s 4K Studios Brings Original Series to UltraFlix
Latest news
Advertisement
Hot News 
CHURCHILL CHINA : Raises Dividend, Confirms Confidence In 2014 Outlook
TYRATECH : Vamousse® head lice products coming to Sainsbury´s and Tesco in the UK
David Lenigas Steps Down As Executive Director Of Polemos
NEWAYS ELECTRONICS : H1 turnover and profit in line with expectations
GLOBAL ENERGY DEVELOPMENT : Provides Update on Catalina Well
Most Read News
1d ago MASTERCARD : Latin America revenue to double by 2019
1d ago ALLERGAN : Facing shareholder demands, Allergan calls special meeting for December 18
1d ago REPSOL : talks to buy Talisman assets stall: WSJ
1d ago SUNPOWER : Verizon Plans Major Expansion of Its On-Site Green Energy Program; Company on Track to Become Largest Solar-Power Producer Among U.S. Communications Companies
1d ago EXCLUSIVE - CHIPMAKER QUALCOMM MAY FACE EU ANTITRUST PROBE : sources
Most recommended articles
16m agoDJRally in European Stocks Halts
18m agoDJFrench Unemployment Figure Sets New Record
24m ago MCDONALD : Moscow courts back closure of three McDonald's branches
31m agoDJStocks Meander Between Gains, Losses
35m ago The trade has to be long dollar, short euro - Maher
Dynamic quotes  
ON
| OFF