Market Analysis

Gold price continues to skyrocket

FOREX

The Pound is trading higher versus all other major currencies during Thursday morning. With today’s gains sterling recovered all the ground lost to the dollar during March, when coronavirus related panic-selling saw the British currency sink versus the, then, safe haven greenback. The latest gains were triggered by the release of the Bank of England’s policy statement, which reveals the bank’s intention to keep monetary policy unchanged due to a more positive assessment of the impact of the lockdown to the UK economy than was previously expected.

Ricardo Evangelista – Senior Analyst, ActivTrades

 

GOLD
Gold price continues to skyrocket as demand for the precious metal surges. The main thrust is coming from the investment sector, after ETF gold demand reached an historical high. Technically, we are in a new and not yet explored scenario for gold, which is reflecting the huge hunger of investors. While demand from the jewellery sector is muted by the Covid crisis, we are witnessing an euphoric phase, where investors are not considering technical indicators or fundamentals as they are simply focused on increasing their positions on gold, The prevailing uncertainty along with growing expectations for further dovish actions by central banks is likely to fuel this phase..

Carlo Alberto De Casa – Chief analyst, ActivTrades

 

EUROPEAN SHARES 
Stocks opened mostly lower on Thursday in Europe amid weaker market sentiment following mixed developments on multiple fronts. Rising US-Sino tensions, increasing virus cases on the old continent and the recent batch of mixed macro data are some of the clouds darkening the sky for investors at the moment. As previously said, there is no surprise to see investors reducing their exposure to risky assets and/or use safer havens as diversification tools when uncertainty rises. The “wait and see mode” continues and market operators are likely to patiently wait for further bullish drivers before driving stock prices higher. However, while macro data and recovery packages remain important, failure from EU governments to contain a second virus wave could pose a serious threat to the economic recovery, leading to important downside risks for markets as a W-shaped evolution is still possible.

The Industrial sector is saving the day on European assets despite the current mixed trading stance. The DAX-30 index brings the best performance of the Eurozone, thanks to Siemens after the company published a solid +8% earnings, beating analyst estimates.

Pierre Veyret– Technical analyst, ActivTrades

 

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