Financial Spread Betting Update 22nd August 2011

This week’s financial spread betting update is now available and can be read by clicking here.

Early trading this morning has seen a jump higher for European stock indexes, which is translating to higher futures prices for US indexes as well at present. Crude Oil opened significantly lower but has since recovered, but the ever-impressive Gold continues to rise, having already posted a new all time high this morning. Gold came within 2 dollars of the $1900 level this morning on the December contract, with the new all time high coming in at $1898. The market is slightly off that level now but if $1900 can be cleared the possibility of $2000 before yearend becomes a distinct possibility.

Silver is also pressing nicely higher this morning following last week’s breakout but is still lagging gold’s advances. I know of a few metals experts who are expecting Silver to perform better than gold in the future as the gold/silver ratio is out of balance compared to the historical norm. Either way, both metals are in a strong uptrend at present and chart wise the target for silver will be the highs of the year around the $49.50-$50 area.

On balance, the US dollar is weaker, although not dramatically so and focus will be on the May lows at 7332 on the dollar index. Currency traders will also have an eye on the Japanese Yen as the prospect of further intervention from the Bank of Japan to weaken the Yen is expected this week.

This week’s financial spread betting update begins with:

Volatility has remained high over the past week, which has overall seen continued weakness for stocks and the dollar, as well as several commodities. The exception to that is the metals sector, which has once again seen new all time highs for Gold….…continue reading by clicking here

Good trading

Phil Seaton

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