EUR/AUD rose to 1…
GOLD: still looking upwards
Information is not investment advice
The gold price has been tough on bulls in August but fundamentals haven’t changed much.
Yes, it did drop not only below $2 000 but below $1 900 erasing July’s breakthroughs. But from the current perspective, gold’s bullish moves in the second part of July appear as “unduly” rush – with its culmination in the first week of August. It had to be stopped and corrected, as it did eventually.
Currently, gold is in the same “normal” channel of steady rising where it has been previously and will soon get back to $2 000 after it rests at $1 950 for a while. The US-China tensions and virus resurgence here and there provide enough reassurance that there will be no lack of uncertainty to keep gold on the bullish trajectory.
That’s why, tactically, in the long term, it may be a good moment to step into the market until gold gets up again.
US stock markets are set to open mixed as the post-Pfizer rally is reassessed, but cyclicals are still clearly outperforming the growth and momentum names that have notched the biggest gains during the pandemic.
Biden maintains the lead in crucial Pennsylvania. EUR/USD little changed since this morning.
Global stocks were mostly lower on Monday, following the weakness on Wall Street on Friday that stemmed from the weaker-than-expected retail sales report for December.
Most analysts claim EUR/USD will dip to 1.2000. After that, the pair should reverse to the upside.
Asian equity markets began the week cautiously after Friday’s losses on Wall St. Mixed Chinese GDP added to the tentative mood for stocks.