Gold and silver have been incredibly interesting commodities to watch throughout the first half of the year. Both commodities have gained exponentially in price. Nonetheless, it seems as though the gains are nowhere near over. In fact, this week could lead to skyrocketing prices in both commodities. Today, we'll talk about the big news that will be released this year, how the news will likely affect gold and silver, and how binary options traders can take advantage of the trends.
The News That Could shake the Markets
if you've been following just about any asset lately, chances are that the term Brexit is one that you've heard quite a bit. This is especially the case if you've been watching gold and silver. You see, Britain has talked about the economic impact the country has faced as a member of the EU for some time now. At this point, the British people will cast their votes later this week, determining whether or not Britain will leave the EU.
This could have a major affect on the prices of gold and silver either way it goes. The reality is that both gold and silver are considered to be safe haven investments. This means that in times of economic or market uncertainty, demand for both silver and gold will climb, leading to gains in price.
If a Brexit actually happens, it could mean economic hardship for both Britain and the rest of the world. After all, with the British economy being a huge one, a Brexit could mean a big hit to global trade. If a Brexit were to happen, Britain would be forced to renegotiate trade agreements, causing massive changes to corporate earnings around the world and likely global economic hardship. This, ultimately would send the prices of both gold and silver skyrocketing. Adversely, if a Brexit was voted down, chances are that gold and silver would fall as safe haven investors start to sell the precious metals.
How's It Looking At The Moment?
While I would love to be able to say that a Brexit isn't likely to pass, that simply couldn't be further from the truth. For some time now, polls have shown that the British people support the concept of leaving the EU. Perhaps more importantly, support for the Brexit has grown in recent days.
As we get closer and close to the vote, it seems as though a Brexit is becoming more and more likely. As a result, I'm expecting for the vote to pass. When this happens, markets are likely to react in a big way. So, be prepared for the news.
How Binary Options Traders Can Take Advantage Of The Trends
As binary options traders, our job is to spot and take advantage of trends surrounding publicly traded assets. Here are the opportunities that will most likely happen in either direction this week…
Brexit Passes – It seems as though this is the likely case scenario. In this case, gold and silver will likely climb as global markets decline. So, binary options traders should watch gold and silver for strong call opportunities and keep an eye on indices for great profits from puts.
Brexit Is Voted Down – While this case doesn't seem remotely as likely as the Brexit passing, it could happen. If the Brexit is voted down, gold and silver will likely fall in value as indices move upward. In this case, binary options traders should watch gold and silver for profitable put options and global indices for profitable call options.
What Do You Think?
Do you think the British people will vote for or against a Brexit? Let us know your opinion in the comments below!
[Image Courtesy of YouTube]