Precious Metals Heading towards a Breakout

You would believe my analysis if you have a look at the price, which are $1800 for gold, $1725 for platinum and $35 for silver. The price ranges also signifies that silver and platinum are outperforming, which should be looked upon as an indicator of a risk on rally. The risk of rally is likely to be precipitated due to a fiscal cliff resolution. We might even see accommodative moves by the Federal Reserve in the coming times that may replace Operation Twist with QE4.

GOLDThe market for precious metals touched the bottom prior to the open ended QE3 announcement made in the summer. Now, there could be another possible major breakout and the market of precious metals are more likely to undergo pricing once again in the further Keynesian move. Moreover, if the fiscal cliff moves ahead and QE4 is announced yet again in 2013 resulting in the expansions of balance sheet of the Fed to buy long term treasuries, which can fuel a hyper inflationary rally. All these situations may have a huge bullish effect in binary options market, which is already indicated by the soaring prices of precious metals. Silver is in for a six month breakout soon as it is outperforming from the month of August.

The volatility witnessed in the mining equities in the coming year might offer cheap, bargain basement opportunities for the binary options brokers and traders, who are looking forward to a long term opportunity in selecting cheap mining equities, which are usually supported by precious metals.

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