Gold 1819,67
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EURUSD 1,1433
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DJIA 26666
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OIL.WTI 40,99
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DAX 13083,35
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On Monday, we saw another high in the gold market. By the end of the trading session the price had rolled back a bit. However, the closing price of the day also showed a 7-year high.
Gold
The yellow metal has only $100 left to pass, to the level shown in October-November 2011. Recall that the historical maximum is 1920 dollars per troy ounce.
We all understand the arguments why gold can rise to $2,000, and then $3,000. But let’s turn on the fantasy. Can gold go down dramatically? What kind of forces could push it to that? Is it possible to see the price of $1,500 again this year.
It seems fantastic. But nothing is impossible in the market. We can assume that several factors must coincide to move to the level of 1500$:
– The victory of doctors over the COVID-19 pandemic. Specifically, the creation of the vaccine
– John Biden will win the US presidential election.
– The inflation rate will rise sharply.
If all 3 points coincide, then: gold will no longer interest investors as a protective asset, international tensions will decrease, the central banks will have to raise interest rates.
S&P 500
The main US stock index rose to its highest level since February 2020. As we predicted last week, a large number of investors and speculators want to drive the price even higher. Investors hope that the huge infusion of money will lead to another year of growth in the stock market. And speculators want to make good money on shortstops.
Pound Sterling
The British pound suddenly grew strongly against the American dollar. However, both fundamentally and technically the picture is still bleak. From the fundamental point of view, the pound is pressed by the situation with the coronavirus. And from the technical point of view, the English currency, unlike the same EUR and Japanese Yen, is below the 200-day moving average.
What’s waiting for us today?
03:30 Minutes of the meeting of the Reserve Bank of Australia
14:30 Chicago FBI Business Activity Index June
17:10 Canadian retail sales for May
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