It’s about Words they Use

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It’s about Words they Use
It’s about Words they Use

It’s about Words they Use

The stock markets are rising not only in the U.S., but also in the Asian markets where the global benchmark was extended by the smooth bullish rally after 3 years, as the investors gain confidence in the markets after China made record lending recently. This shows the prospects for the growth within the economy, which is the largest consumer of gold and has several countries dependent on it including Australia.

This in turn resulted in allowing the bulls to enter the gold market where they took the metal further up to the 1328 area where the price is sustaining at that level, where short-term bullish momentum has been gained since gold is trading above the 1311 support level.

Markets Soar

The MSCI index rallied consecutively for the ninth day where it gained nearly 0.3% on Monday while the S&P 500 index climbed by 0.2% after which the index tested 1840 level and managed to close just below that level on Monday.

On the other hand, commodities including cooper also advanced where copper gained by 0.2 percent while silver continued to gain in value where its gains are being compared with the bullish streak it made back in 1968.

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Tactfully Playing

The most import reason behind this bullish momentum and sustainability is the wordings being used by the monetary policy makers, especially that of the United States. They really do play wisely and keep the markets in control and far from panic, since the new chair of Federal Reserve; Janet Yellen stated that the US economy is strong enough to endure the cuts being done on the stimulus plan.

If this statement is to be analyzed, it does not encourage any panic while passing on the so-called bitter message to the speculators who might as well have been going short over the market since stimulus is being trimmed. However, the wording of ‘strong enough’ for the economy automatically creates a positive aspect in the minds of the traders where their confidence in the stock market remains there, and no short-selling is seen.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com