Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
GOLD: resurging
Information is not investment advice
Key indicators
Performance in 2020: +1.6%
Last day range: $1,481 – $1,560
52-week range: $1,266 – $1,700
Technical levels
Resistance $1,590
Support $1,536
What happened
Recently, the US Fed announced an unprecedented “all-inclusive” quantitative ease program that aims to shield the American economy from the risk of high borrowing costs. Consequently, that should reassure available funding at healthy rates and keep the economy going. This action switched the investors’ mood. Previously, they were dumping all assets including gold in order to ensure cash at hands – that’s why the precious metal has been losing value for the last two weeks, and the US dollar has been mostly growing stronger. Now, with the Fed’s measures, the cash circulation in the economy appears to be somewhat guaranteed. Hence, the investors are getting back to the healthy flight to safety mode. Consequently, gold gets back to enjoy high demand and rises in value. Goldman Sachs comments this may be a good moment to buy the precious metal.
Similar
Brutal session in the equity markets yesterday
Ichimoku Kinko Hyo EUR/JPY: The EUR/JPY pair is now trading within the Kumo…
The U.S. economy added 390,000 jobs in May
Ichimoku Kinko Hyo USD/JPY: The USD/JPY pair is now trading above the Kumo…
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