GOLD
Gold prices surged to an all-time high during early Thursday trading, continuing a winning streak of consecutive positive sessions that began at the end of February, resulting in a gain of over 6% so far. This marks the longest winning streak since 2021. Gold traders have been reacting to a subtle yet noticeable change in tone from the Federal Reserve, particularly after its Chairman publicly acknowledged on Wednesday the likelihood of a rate cut in the coming months. Jerome Powell's statement coincided with the release of US labour figures, which revealed lower-than-expected private sector job creation. With the softening of the dollar, lower treasury yields, ongoing geopolitical instability, and concerns over global economic growth, the price of the precious metal is expected to remain well supported, and further gains should not come as a surprise.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
Stock benchmarks traded sideways in Europe on Thursday amid lingering economic uncertainty and a lack of bullish drivers for investors.
The STOXX-50 stayed inside its narrow, short-term trading range, with gains from utility and financial shares offset by losses in all the other sectors, extending the bearish sentiment seen across Asian benchmarks overnight.
The lack of bullish monetary catalysts in Europe and the US, combined with lingering economic and geopolitical uncertainties in the Middle East, Eastern Europe, and China, is certainly putting risk appetite on hold.
Indeed, investors were disappointed (but not surprised) to see Jerome Powell remain vague regarding the beginning of the easing monetary cycle, saying, "Cuts at some point later this year will be appropriate."
All eyes are now shifting back to the old continent as traders and analysts await the ECB's next decision on rates, which is due this afternoon.
While no change is anticipated regarding borrowing rates, investors will pay close attention to the wording chosen by ECB President Christine Lagarde during the press conference 45 minutes later.
Any dovish hint, however small, could provide traders with enough confidence to take equity markets higher and lead the STOXX-50 to clear its 4,920.0pts resistance.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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