Market Analysis

Gold prices are on the rise

GOLD 
Gold prices are rising during early Friday trading. The precious metal is on track for its best week since November, with its gains reflecting the losses of the US dollar due to the inverted correlation between the two assets. The US currency lost more than 1% in relation to other majors over the course of the week, as the markets, having already priced in the tightening of policies by the Federal Reserve into the value of the greenback, now shift their focus onto other central banks that haven’t yet started to cut back on stimulus. In such a scenario there may be scope for further dollar weakness and therefore, gold gains.

Source: ActivTrader

 

FOREX

The US dollar continued to slide in relation to other major currencies during early Friday trading and is on track to close the week with the worst performance since late 2020. With tapering of asset purchases, several interest rate hikes and the intention to reduce the size of the Fed’s balance sheet already baked into the value of the greenback, the week was disappointing for dollar bulls, who are still digesting the temperance of Jerome Powell’s testimony to congress and the fact that US inflation didn’t, this time around, exceed expectations and was right on the money, at 7%. With investor’s attention now focusing on other major central banks – those that haven’t yet started to tighten their monetary policies -there may be further downside ahead for the dollar once tightening gathers pace elsewhere.

Source: ActivTrader

 

The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.

All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.

Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.