Gold Pushes Higher On Iraq Unrest

Morning Report: 08:45 London

• After a weekend of violence and an incredibly rapid advance from ISIS in Iraq, precious metals are in demand this morning. Gold and Silver are stepping up their recent up trends.                                             

• Generally markets have a slight ‘risk-off’ bias, with the S&P 500 dipping lower this morning.

                             

• The yen pairs are on the back foot as traders seek out the perceived safe haven of the Japanese yen.
                                                                                                                                                       
                              

                             
                             
• Meanwhile, the British pound continues to hold at the highs, and outperform the euro.

                             

                             

                             
Coming up today:

• Coming up today, we have European inflation data from 10.00.

• From 13.30, we have US Empire state manufacturing, followed by Capacity Utilisation at 14.15.

Trade Idea:

• Although gold is short term over bought, the longer term still indicates that gold and silver have some upside. While the situation in Ukraine barely impacted markets, Iraq is a different beast. The potential disruption to oil flows is one consideration, but the other danger is that ISIS is a complete unknown. Western politicians may have spend centuries trying and failing to second guess Russia, but this new terror threat is a whole new ball game.

                             

As such, we could see some sustained upside for gold over the coming month. A good way to play this is a HIGHER trade predicting that gold will close above $1300 in the next 31 days for a potential return of 190%.

This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice. 

Summary: