Stocks Aim Higher Gold Is In The Clouds
Fiona Cincotta July 28, 2020 7:28 AM
Taking cues from a firmer close on Wall Street overnight, Asian markets advanced, and European bourses are pointing to a stronger start. Gold shoots to within touching distance of $2000.
Taking cues from a firmer close on Wall Street overnight, Asian markets advanced, and European bourses are pointing to a stronger start.
Coronavirus concerns remain with outbreaks and flare ups across the globe making the prospect of a second wave very real. China, Hong Kong, France, Germany and Spain are all seeing a spike in covid cases.
Looking ahead US consumer confidence is also in focus with expectations for a decline in confidence after a rebound in June.
Gold soars to almost $2000
Gold soared to a record high in the Asian session, supported by a weaker dollar and safe haven demand. Spot gold rallied to within striking distance of $2000, as the precious metal continued its relentless climb. Covid fears, elevated US – Sino tensions and the prospect of an additional $1 trillion stimulus package in the US sent gold soaring. Attention will turn towards the Fed which started a two day policy meeting today, due to conclude tomorrow. Expectations are for a dovish Fed, willing to see inflation pass its target before rates will rise, potentially adding more pressure to the US Dollar. A weak greenback is gold positive, making it cheaper for international buyers.
Gold has surged over 30% YTD making it one of the best performing assets. Gold is up 9% over the past 6 session. Whilst the rally in the precious metal is pausing for breath we very much doubt that this is the peak.
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