Shares fluctuated in Europe at the beginning of the week
Gold remains in a positive phase as despite a steady dollar on the currency market, a modest decline on the yield of the 10-year Treasury note is supporting bullion. Overall, the trend still appears bullish, as buyers outnumber sellers, while gold is reasserting its safe haven role as well as being a hedge against possible inflation. Moreover, from a technical point of view, the break out of the resistance at $1,840 has opened space for further recoveries.
Carlo Alberto De Casa– Chief analyst, ActivTrades
Shares fluctuated in Europe at the beginning of the week with no significant price action so far, amid a lingering cautious trading stance from investors. The concern over rising prices that sparked last week’s sell-off on stocks, especially on tech shares, hasn’t vanished despite Fed officials playing down inflation data. Even if there is still no significant threat to the stock rally so far, most benchmarks continue to consolidate as investors wait for new bullish catalysts to drive prices to new highs. That said, traders will of course keep their focus towards monetary policy this week with a new batch of speeches from Fed officials, alongside the minutes of the last FOMC meeting that is expected to provide more clues on the future of the massive bond buying program. Technically speaking, most indices are going through a consolidation phase with no directional trend likely as long as there is no significant break-out.
Pierre Veyret– Technical analyst, ActivTrades
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