Sudden spikes? Yes, please! Gold is above $1,800, finally!
Gold surges a bit
On Friday, gold headed south. The yellow metal found itself on track to report its greatest weekly ascend since August after market turmoil, which sent equities reeling and put pressure on Treasury yields as well as the evergreen buck.
On the Comex exchange, February delivery gold futures GCG9 rallied by 0.2% being worth $1,246.10 an ounce. March delivery silver futures SIH9 managed to head north by 0.2% ending up with $14.545 an ounce. For the week, the yellow metal surged by 1.6% that would be the most impressive such gain since a 2.5% leap by August 24. The yellow metal is trading near a five-month maximum, trimming its year-to-date tumble to 4.8%.
However, the weekly surge has left some experts unimpressed in the face of a steep selloff in global stocks, a dive in the evergreen buck as well as bond gains, and market participants started scaling back hopes for future interest-rate lifts by the key US financial institution.
On Thursday, American shares slumped steeply. Ahead of the publication of November jobs data, stock index futures started lower.
Estimating the purchasing potential of the US currency versus its primary counterparts the USD index surged by up to 0.1% Friday, although diving by 0.4% for the week. Besides this, the gain on the 10-year Treasury note TMUBMUSD10Y bounced off nearly 2.6 basis points from a three-month minimum ending up with 2.897%.
A weaker evergreen buck is capable of boosting commodities priced in the US currency because it makes it more affordable to keeper s of other currencies. By the way, lower bond yields can also be good for commodities that don’t provide a yield.
January delivery platinum futures PLF9 went down by 0.4% ending up with $786.20 an ounce. Moreover, March delivery palladium futures surged by 0.1% trading at $1,143 an ounce.
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.
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!