Gold Slides Amid Stronger Dollar

Sydney-Australia (Mar 31)  Currencies:  The euro (EUR) continues to weaken against the US dollar (USD). The single currency has retraced from 1.387 last week to a low of 1.3708 before correcting to 1.3753.

The US dollar (USD) moved higher touching 102.94 against the Japanese yen (JPY) as the US Federal Reserve cuts back aggressively on its monetary expansion programme.

Mover & Shaker with FX Options

Gold (XAU) continued to weaken over last week. The precious metal opens this week below 1296.45 dollars per ounce amid investors belief in a stronger dollar. Markets are expecting this afternoon some monetary policy hints by Fed chairman Janet Yellen.

Options traders may consider constructing a Bear Put Spread on gold.

A bear put spread can be constructed by purchasing an at-the-money Put and selling an out-of-the-money Put.

Source: action-forex