Gold is preparing for a new rally

Morning Stock News

Gold  1902,985
(+0,23%)

EURUSD   1,1708
(-0,06%)

DJIA  28591,50
(+0,35%)

OIL.WTI  41,02
(+0,15%)

DAX   12900,09
(+0,01%)

A relatively quiet week is starting in terms of macroeconomic statistics. The business reporting season continues, but the optimism of the players is already beginning to end.

Gold

The current state of the markets is overshadowed by the lack of progress in decision making on financial assistance to Americans. On Wednesday, the Senate will vote on this, but it is already clear that this decision will not be taken. There is very little time left until the US presidential election, which will take place on 3 November. The Democrats are already saying that after their victory in the election, the amount of aid will be revised.
The COVID-19 contamination in the USA is gaining momentum. Most states report a record number of cases every day. The second wave could have an even greater impact on the economy than the first. The threat of quarantine measures is increasing every day. Investors should be patient and try to keep their assets in a more secure place.


Pound Sterling

The current situation on Brexit keeps the pound in limbo. The parties are concerned about the lack of progress in negotiations. Deadline for resolution is 31 December. Until this date the GBP/USD pair may behave in different directions. Traders in the current situation cannot determine in which direction to go. The pound may grow if the negotiations continue, but a growing problem with the coronavirus may make adjustments to growth plans.


Gold

Gold continues to be the most stable refuge asset. More and more investors are giving up risk due to increasing coronavirus infection. Due to growing uncertainty, gold is becoming an excellent tool for preserving capital. Over the past few trading sessions, gold has been able to grow to a key level of $1900 per ounce. In the near future, we will be watching another gold rally in the market.


What awaits us today?

04.00 Chinese GDP since the beginning of the year
04.00 Volume of industrial production in China since the beginning of the year
14.00 Address by Mr. Powell, Head of the US Federal Reserve.


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