DAX Struggles at the 25,000 Threshold: Gold Rush and Euro Strength Weigh on Sentiment
The bulls on the Frankfurt floor are fighting with dull weapons. While the DAX briefly managed to leap over the prestigious 25,000-point mark on Tuesday, it lacked the stamina for a sustainable breakout. Ultimately, the leading index bid farewell to the session with a slight dip of 0.15%, closing at 24,894 points. While Wall Street continues to eye record levels—driven by a resilient tech sector—an increasingly stronger Euro is weighing heavily on export-oriented German stocks.
Market Paradox: Risk-On Sentiment Meets a Gold Explosion
The current market environment resembles a riddle. While US technology indices have been flirting with the 26,000-point level, signaling a "risk-on" mood, the "crisis metal" gold is showing unprecedented strength. Gold prices have already pulverized the $5,000 per ounce milestone—a clear signal of deep-seated underlying uncertainty. The phenomenon of stocks and gold rising sharply at the same time is a rare occurrence that often points to a massive flight from the US Dollar, which has come under significant pressure ahead of today's Fed decision.
Wednesday Showdown: What Will Jerome Powell Deliver?
Tonight will be the moment of truth. While another interest rate cut by the Federal Reserve is considered highly unlikely at this meeting, markets are hungrily awaiting the "Forward Guidance"—the outlook for the coming months. A weak Dollar may fuel US indices, but for European exporters, it acts as a significant drag. Jerome Powell's rhetoric will determine whether the DAX receives the necessary "fresh wind" to jump back over 25,000 points or if it will pivot back toward the south.
Commerzbank Shines – GEA Group Slips to the Bottom
The DAX leaderboard presented a split picture on Tuesday. Commerzbank secured the top position with a gain of 1.9%, benefiting from the shifting interest rate landscape. Conversely, GEA Group occupied the bottom spot of the daily rankings with a decline of 3.4% following disappointing impulses.
Technical Summary: The DAX is currently moving "along the cliff." A weekly close above 25,000 points is essential to secure positive momentum heading into February. If this breakthrough fails to materialize, the index risks buckling under the combined pressure of Euro strength and the ongoing gold euphoria.
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