The market mood remained tepid, considering the worsening US-China diplomatic ties after Beijing retaliated for being ousted from the Chinese consulate in Houston. Gold surge to fresh all-time highs and the US dollar continued the sell-off across its main competitors.
The growing economic concerns amid a continued rise in the coronavirus across the US weakened the US currency. According to data compiled by Johns Hopkins University, global confirmed coronavirus infections passed 16.05 million on Sunday, with 4,178,730 in the US.
Gold outperformed among all other major asset classes, as investors flocked to the traditional safety-belt. The yellow metal rallied nearly 2% earlier today to fresh record highs of $1944.76. Silver tagged along and reached a new 6.5-year high of $24.25.
EUR/USD reached fresh 22-month highs above 1.1700, as the shared currency continues to benefit from the EU recovery fund deal and upbeat Markit’s preliminary PMIs for July. GBP/USD is off the 4.5-month high of 1.2857, still trades with moderate gains above 1.2800. USD/JPY has hit a four-month low under 105.50 amid the dollar break down and the yen strength due to increased safe-haven demand.
WTI has bounced-off a dip below the $41 mark and remained on track to book the third straight monthly rise.
Moving ahead, market participants now look forward to the release of German IFO Business Climate for some impetus. In the North American session, the US economic docket sees the release of Durable Goods Orders for June, which might influence the USD price dynamics and further contribute to produce some meaningful trading opportunities.
Gold hits new All-time High as the US Dollar is Continuing its Slide
Published on 2020-07-27 07:46
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