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

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
React to this article
Latest news
Date Title
10:06p NCKU Professor Gives a Talk on Medieval Apocalyptic Imagination
10:05p BUFFALO WILD WINGS : will anchor the new City Center Plaza restaurants (BRIEF)
10:05p GARDEN CITY NPV : Primary Health to open Garden City urgent-care clinic
10:05p HARLEY DAVIDSON : BRIEF: Eagle man injured in motorcycle crash near McCall
10:05p PRIMECARE SYSTEMS : Utah man convicted of helping Lehigh jail doctor evade debt and taxes
10:05p 9187669 CANADA INC. : Successfully Completes and Extends Offer for Hartco Inc.
10:00p CUE ENERGY RESOURCES : Requisition Notice Removal of Directors
10:00p UNICEF UNITED NATIONS CHILDREN FUND : A rush to help Burundi’s refugee children in Tanzania
09:56p China stocks extend selloff, keep Asia in check
09:55p RAKUTEN : Kobo Writing Life Officially Launched in Japan
Latest news
Advertisement
Hot News 
NETSCIENTIFIC : PDS Biotechnology reports positive Phase I results
RALLY SOFTWARE DEVELOPMENT : C O R R E C T I O N -- Bronstein, Gewirtz & Grossman, LLC/
MARIMEDIA : Business and Trading Update
ASIAN BAMBOO A PETITION FOR INSOLVENCY PROCEEDINGS WILL BE FILE : Asian Bamboo AG: A petition for insolvency proceedings will be filed (DGAP Adhoc)
ONE HORIZON : Aishuo App Now Supporting Chinese Mobile Payment Platforms; China UnionPay, Alibaba's Alipay and Tencent's Wechat Wallet
Most Read News
08:50p Airbus debates new A320 output hike, suffers test glitch
06:04p U.S. Congress sets hearing on Takata, automakers expand recalls
08:03pDJFederal Investigators Blame Shell for Alaska Drill-Ship Accident
07:49p ALIMENTATION COUCHE TARD : prices $700 million offering of senior unsecured notes
07:56p PLAINS ALL AMERICAN PIPELINE : California senators criticize response to coastal oil spill, say actions 'insufficient'
Most recommended articles
09:56p China stocks extend selloff, keep Asia in check
09:35pDJNew Zealand ANZ May Business Confidence +15.7%; April +30.2%
09:19pDJScandal in World Soccer Pressures Sponsors
09:03pDJNTSB Blames Shell for Alaska Ship Accident -- Update
09:02pDJLenovo Group Plans to Issue Yuan-Denominated Bonds