<< Financial Market Analysis  Trading Week Ahead - 30th March 2009 >>

One market that has been away from the headlines is gold. In the first quarter, it ran up to over $1,000, but has since retreated to just under $800. Gold was seen as a hedge against inflation and was used as a hedge against the weak dollar. With inflation on the wane and the dollar on the attack, gold has been on the retreat. However it hasn’t collapsed in the same manner that oil has, and this is because gold is seen as a safe haven in times of trouble. These opposing cross winds have kept oil in a volatile trading range between $800 and $700 over the last 30 days. With gold rallying $50 alone on Friday, there is a very real chance of a break out of this range in the next 30 days. An up or down trade predicting that the price of gold in dollars (Gold/ USD in the forex menu) will touch $650 or $900 in the next 30 days could return 111%. Good luck with this one, and remember I post every Monday morning with a suggested trade so please check back each week and good luck with your trading – regards Anna