After Obama’s victory was confirmed 68% of all gold positions locked in on Banc De Binary’s trading platform were predicting further rises in the precious metal, versus 32% forecasting an imminent drop. These statistics give as clear an indication as any of the dominant market sentiment surrounding the re-election.
Banc De Binary CEO, Oren Laurent, believes that another term in office for Obama directly translates to bullish sentiment on gold. Laurent explains, “The markets are anticipating a democratic administration that will be implementing a greater degree of monetary easing in order to stimulate the flagging US economy.”
Gold has been steadily rising for a while now, but the precious metal started to range as traders waited to see what the results of the American elections would be. In the quarter preceding the election, gold Call options on Banc De Binary’s platform were up to 60%, whereas Put options were down to 40%. With the political polls by no means conclusive, traders began to hold off on gold trades as the Election Day neared, this no-doubt due to most analysts being uncertain as to what the election result would be and what this would mean for gold.
Laurent compares the differing policies of each of the candidates and how they would have affected market sentiment, “Romney has been categorically against monetary easing and so a Romney victory necessarily entailed uncertainty as to the Fed’s policies going forward. Contrast this to the Fed printing up more money than ever before during Obama’s last term and you can understand why gold stalled in anticipation of the election results.”
Taking into consideration the immediate market reaction after Obama’s re-election, Banc De Binary’s analysts are forecasting that the bullish trend on gold will continue and that gold will gain for a twelfth consecutive year. This would make it the longest winning run for ninety years.
Founded in the wake of the last crisis, Banc De Binary’s mission has been to provide investment alternatives in a financial climate where traders are rapidly losing faith in traditional vehicles. The company has gone from strength to strength since then, maintaining a very high profile in the global media and garnering a number of prestigious awards. Banc De Binary now stands as the leading global brokerage of binary options, making trading simple and affordable for retail investors.
