Gold has begun to start climbing again, finishing the week ending on October 21st up for the first time in four weeks. At the close of the week, December gold futures stood at about $1,267.70 per ounce, signaling that the tide is about to turn in the gold market. It was a rise of over 1 percent for the week for the precious commodity. It was so strong that some analysts believe that gold could climb as high as $2,000 per ounce in the near future, especially if the currency market keeps seeing the same levels of volatility that it has been seeing.

This point of view isn’t based on just one week of data. As you know, gold is often used as a hedge against the U.S. dollar. As the dollar goes down, gold often goes up, and vice versa. This is called an inverse correlation, and although it isn’t the only one that exists within the markets, it is one of the more well-known. Gold dropped by about 5 percent at the beginning of October, and as it did so, we saw a lot of gathering strength in the U.S. dollar, especially against European currencies—the euro and the British pound sterling. However, with interest rates on the horizon in the U.S. market and economic stability being a likelihood in the near future within Europe’s economy, it is only natural that the USD be looking at the tail end of its rally.

The Fed’s December meeting may change that. It is anticipated right now that the Fed will raise rates in December, but there is still a way to go before that happens, and the jobs reports are beginning to lose the luster that they had a few months ago. They economy is a bit more anemic than it was at the beginning of the summer, and this will weigh heavily on the decision makers within the Fed as they get ready to make their decision on whether treasury bond interest rates will go up or down. If the poor economic data keeps coming in, it is likely that the Fed will hold off, and this could push gold up even more. It is still a little too early to tell for certain, so keep your eyes open at this bit of news so that you can make more informed decisions.

Gold is traded as a binary option at almost every single binary options brokerage, but it is one of the most under-utilized options out there. This is actually a pretty unfortunate thing because gold is often one of the most easily predictable assets out there. Yes, gold doesn’t have the same high frequency ability that you would find in stocks or currency pairs where they can be traded as 60 second (or shorter) options, but that does not mean that you cannot be even more profitable trading something with a high level of predictability. Gold fits this pattern just about as strongly as any asset can, and this is something to use to your advantage and help yourself when it comes to making more money in your trading.

Even with the slight uncertainty that we see in gold’s pricing because of the Federal Reserve’s influence over the dollar, it is safe to say that gold is typically reliable. It does well at times like this, but there are always those periods of time where gold just can’t hold its value. This has traditionally scared many serious investors away from it because it doesn’t have the same high level of liquidity that other assets have, but that doesn’t mean that there is not a lot of money making potential within the asset. Binary options trading has made the commodity even more approachable to the average trader.