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The world’s safe haven precious metal took a dive following parliamentary elections in Europe. The troubled state of Greece was drawing in a new parliament to try and save itself from relegation from the Europe Union. Gold has been hitting new highs since the credit crisis unfolded in 2008. Leading investment bank Lehman brothers filed bankruptcy in September 2008, since then the race to hit new highs went as far as $1829 in September 2011. Gold is currently trading at $1584 as shown on Tradenext Limiter’s iTrader platform. Gold went downhill after the French elections were announced victorious for socialist Hollande. Dipping pass the psychological level of $1600 on Wednesday. Gold is trading in the interbank market and is classified as a currency, its symbol is XAU USD and trades in line with the COMEX Gold Futures contract price. Gold is also traded on domestic futures exchange including India's MCX-SX, Pakistan's PMEX and Tokyo Exchange. Tradenext Limited offers traders access to trading precious metals and energy contracts. They offer a multi bank executable price feed which aggregates the best bid and best offer from leading banks including UBS, Citi and Barclays. Tradenext Limited has a sister firm which is a member of the MCX exchange and offers traders access to the MCX gold contract. MCX Gold is currently trading at INR 28756. Gold has gained popularity as a global safe haven product, London being the financial hub for the world is the largest clearer of gold. In India, Mumbai is under India's liberalised gold regime. The CME, the largest futures exchange in the world is home to the biggest volume of Gold futures. For physical Gold, delivery and storage Zurich in Switzerland has positioned itself as the market centre piece. Other key markets include Istanbul, Dubai, Singapore, and Hong Kong which are doorways to important consuming regions. In Turkey there is the famous Grand Bazaar. In the worlds third largest economy there is Tokyo, where TOCOM sets the mood of Japan. Tradenext Limited launched iTrader for online gold trading, oil trading and forex trading. Forex is the most liquid asset class in the world and daily volumes across spot, swaps, forwards and options are hitting the $4 trillion mark. People have been attracted to gold because of the deep liquidity. What makes gold move is a crucial question traders ask. Adil Siddiqui Head of Global Business Development as FSA regulated Tradenext Limited believes the following to affect the price of Gold. The above ground supply of gold from central bank's sale, reclaimed scrap, and official gold loans. Post credit crunch we saw an influx of central banks inflating their gold supplies from the IMF. Countries such as Canada, Australia and South Africa where gold is produced use tools such as hedging interest of producers/miners to manage the fluctuations in the precious metal. In addition, global macroeconomic factors such as major currencies and interest rate, and economic events for example the Non farm Payrolls monthly announcement. Not to forget certain commodity-specific events such as the construction of new production facilities or processes, unexpected mine or plant closures, or industry restructuring, all affect metal prices. Traders look for deep liquidity, competitive pricing, advanced order types, 1 click trading and social FX all available on the iTrader advanced MT4 trading platform. Adil Siddiqui believes Gold will further drop during the summer months especially as demand falls but is optimistic that the safe haven metal can retract above the all important $1700 mark post the summer.
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