Trade Idea: Buy Gold on a Tuesday, Sell on a Wednesday $$
Market Report: 07.00 London
This morning gold is pushing even higher, reaching just $0.20 shy of $1,350 in early trading.
Yesterday, FT Alphaville highlighted an interesting piece of research which showed that gold has rallied by $20 every Tuesday for the last few weeks. Perhaps its just a random trend, but its certainly quite striking:
After rallying on a Tuesday however, gold has not been powerful for the rest of the week usually. One way to capitalise on this is to place a ‘No Touch’ bet predicting that gold won’t touch a level $30 higher in the next 6 days.
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Luck/coincidence is no doubt playing a part, but financial markets work in strange ways and previously random patterns can start to become a self fulfilling prophecies as traders look for the pattern to repeat. Add to this the fact that traders may be wanting to pull some money off the table after booking strong gains and gold could be set for for pedestrian growth for the rest of the week.
A good way to play this is a No Touch bet predicting gold won’t touch a level $30 dollars higher than current levels in 5 days.