Goldcorp (GG) has had an incredibly rough time in the market as of late, and for good reason. At the end of the day, the price of the company’s flagship product is falling like a rock. Today, we’ll talk about that product, why it’s falling in value, and what binary options traders should be watching for when trading Goldcorp.

Goldcorp Is A Victim Of Circumstance

As mentioned above, Goldcorp has had an incredibly rough time in the market lately. However, that’s not at any fault of the company itself. In fact, Goldcorp is more of a victim of circumstance. You see, it all has to do with the company’s flagship product.

As the name, Goldcorp would suggest, the company’s flagship product is gold. They make their money by mining, refining, and selling the precious metal. However, this fact in and of itself involves risk that is unique to the mining industry. That risk is the risk of movement in spot prices in the market.

You see, Goldcorp hasn’t done anything wrong. However, at the moment, the price of gold is falling hard. As a result, the company simply isn’t seeing the margins that they have seen in the past. After all, the cost of mining gold isn’t falling by any means. So, when they sell the gold they’ve mined, and the price is lower, Goldcorp is forced to foot the declines.

What’s Going On With Gold

As mentioned above, Goldcorp is having a rough time in the market at the moment, largely because of declines in the price of gold. So, if you’re going to trade the stock, it’s important to understand why gold is falling, and what factors cause movement overall in the value of gold.

Gold, like most commodities, is driven by supply and demand. When supply is up and demand is down, the price of the commodity falls. However, when supply is down and demand is up, the price of the commodity climbs. However, gold is also a safe haven investment, adding complexity to the movement in the commodity.

In fact, it’s the safe haven side that’s causing declines in the value of the stock. At the moment, market and economic conditions are improving around the world. As a result, investor appetite for risk is starting to climb, causing investors to sell their gold and look to the market for gains. As a result, we’re seeing declines in demand, leading to declines in the price of the commodity. Because gold is the flagship product at Goldcorp, the declines are hitting the company’s stock as well.

What Binary Options Traders Should Be Falling

Moving forward, binary options traders should keep a close eye on Goldcorp as the stock is likely to present several opportunities ahead. However, if you want to take advantage of these opportunities, you’ll need to stay on top of the news. In particular, traders should pay attention to what’s going on in the global market and global economy. After all, any updates to economic or market conditions can lead to wide movement in the price of gold. Also, pay close attention to major events like the French Presidential win of Emmanuel Macron, the Brexit, and future moves made by new presidents in both France and the United States.