Sudden spikes? Yes, please! Gold is above $1,800, finally!
Gold rallies as American stock-market surge seems set to pause
On Wednesday, the yellow metal surged because a leap in shares, which took two of the three key American stock indexes to record peaks, cooled.
However, a perky evergreen buck, keeping to its highest value for 22 months, kept gains for gold checked.
As a matter of fact, June delivery gold futures went up by about 0.1% ending up with $1,274.40 an ounce right after the most-active contract managed to settle at its lowest values since December 26 yesterday. Gold has decreased in 5 of the last 6 trading sessions.
Eventually, metals have been suppressed due to the fact shares have mounted a steady ascend to peaks since a selloff late 2018, with the S&P 500 index SPX as well as the Nasdaq Composite Index COMP demonstrating all-time maximums on Tuesday. However, stocks looked braced for facing struggles contributing to recent profits.
Besides this, the ICE USD index, a major indicator of the evergreen buck versus six key counterparts, jumped by up to 0.1% being worth 97.695, which is close to its highest value since June 2017.
A stronger American unit is able to make purchasing the buck-pegged commodity less affordable for traders who utilize other currencies.
In fact, the bout of weakness in the yellow metal has made some assets pegged to gold more attractive, as some experts explained. In addition to this, the SPDR Gold Shares exchange-traded fund GLD went down less than 0.1%.
May delivery silver futures managed to surge by up to 0.1% concluding the trading session at $14.805 an ounce. As for May delivery copper futures, they jumped by nearly 0.5% reaching $2.908 a pound.
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.