OpenBook’s Gold Bulls Anticipate the Return of $1800
(eToro Blog) Friday’s unexpectedly improved U.S. labor data helped to bring about a strong rebound in gold prices. Gold traders took advantage of an earlier 2% price drop – the largest single day decline in a month – to buy into gold bullion which gained 0.6% earlier in the Asian session, and was trading at $1,736 per ounce. On the OpenBook, long positions outnumber shorts by a ratio of more than 4-to-1.
Over the past 24-hours, trader javiviveloz has closed out more than a dozen positions in gold, both longs and shorts with an average return of more than 6% and some as 9.97%. This trader, who has 437 followers and 87 copiers, trades only in commodities. He allocates 81.8% of his portfolio to gold and the remainder to silver and currently has several long gold positions open, which would not need too big a rally to see gains. Over the past 3-months, this trader has seen his P&L rise 62.7%, and would be a good choice for those OpenBook traders who are considering branching away from currencies.
Uncertainty over the Greek situation, specifically, and the Eurozone, in general, is likely to continue to support gold prices. Analysts say that the uncertainty is likely to compel the majority of the world’s central banks to maintain a more accommodative monetary policy. While the likelihood of any additional quantitative easing from the U.S. is less likely now given the labor data, the outlook remains supportive of gold prices in light of the Fed’s commitment to low-interest rates for an extended time.
OpenBook trader XenderX expects that gold prices will likely hit $1800 before the trading day ends, and has opened up two long positions in anticipation. This primarily high-risk trader is on the verge of returning a 474% profit for the last six months, and allocates 36.5% of his portfolio to gold with another 17% to silver; the allocation has returned 16.8% and 18.8%, respectively, over the last quarter.
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