Goldcorp had an incredible time in the beginning of the year. However, the month of March wasn't so great for the stock. Nonetheless, it seems as though the stock getting ready to climb again as gold gains its footing. Today, we'll talk about why the value of gold is climbing, what this has to do with Goldcorp, what we can expect to see moving forward, and how binary options traders can find an incredible opportunity here.

Why Gold Is Starting To Head Up

Gold is having an incredible time in the market at the moment, and it's all thanks to the Federal Reserve. You see, the USD has been heading upward because the Federal Reserve was expected to raise its interest rate between 2 and 4 times throughout the year 2016. Because the USD is no longer backed by gold, the value associated with the currency is dependent on the interest the Federal Reserve charges. So, if they were to raise the interest rate, they would essentially be raising the value of the USD. However, the April FOMC meeting has come to a close, and the Federal Reserve announced very dovish statements. Essentially, an interest rate hike isn't expected to happen for quite some time now.

Because an interest rate hike isn't happening this month, currency traders have started to push the value of the USD down against other global currencies, and this is a great thing for gold. You see, gold is priced using the USD. Therefore, when the value of the currency rises, gold becomes more expensive in other nations, leading to declines in demand and ultimately the price of the precious metal. However, when the value of the USD falls, gold becomes less expensive in other nations, leading to spikes in demand and the value of the metal. As such, since the Federal Reserve isn't likely to raise its interest rate any time soon and the USD is falling, the value of gold is climbing.

What This Has To Do With Goldcorp

As the company's name suggests, Goldcorp's primary product is gold. The company mines for, melts down, and sells gold to make its money. As such, when the value of gold is down, the company doesn't make as much money on its products. Adversely, when the value of gold is up, the company makes more money when it sells its products. Ultimately, investors are investing for gains, and gains are generally seen in Goldcorp when the value of gold heads upward. So, with gold finding support from the Federal Reserve, Goldcorp's stock is following the trend upward as well.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion with regard to what we can expect to see from the price of gold, and therefore Goldcorp. At the moment, gold is still trading well below its intrinsic value. So, on price alone, investors should be all over the metal. However, there's more supporting growth in the metal than that. The US Federal Reserve isn't likely to raise its rate for some time, keeping the value of the dollar down. That mixed with uncertain economic conditions around the world, uncertain market conditions around the world, and uncertain geopolitical conditions around the world will likely help the value of gold to continue on the upward trend.

How Binary Options Traders Can Take Advantage Of The Trends

As binary options traders, it is our job to predict the direction of market trends and capitalize on the movement. Considering the fact that gold and Goldcorp are heading upward, there are two great opportunities here. Binary options traders should watch both of these assets for strong call option opportunities. This will allow traders to ride the trends up to the top… where the profits are!

What Do You Think?

Where do you think Goldcorp is headed from here and why? Let us know your opinion in the comments below!

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