The market is filled with optimism. Does gold give a signal?

Morning Stock News

Gold   1693,50
(-2,83%)

EURUSD   1,0799
( -3,37%)

DJIA  24115
(-6,28%)

OIL.WTI  25,095
(-36,68%)

DAX   10609
(-13,11%)

The trading week ended in a minor note. There’s absolutely not enough current news to move the price up. Macrostatistics shows that the recession caused by the coronavirus was stronger than the 2008-2009 recession.


S&P500

S&P500

While investors on the stock market are in a state of euphoria and believe that the situation in the economy is quickly normalizing given the huge financial assistance from central banks and the government. So far it is difficult to judge, as the current levels of the economy are levels of “great recession”. The S&P500 closed lower by 0.56% at 3098, while the DAX rose by 0.4% to 12330.


Euro

After the EU Council meeting, many comments on the current economic situation were received. So far it is clear that the council is not able to agree on a recovery fund, and negotiations are postponed until July. If you look at the chart of the pair, you can see that the price makes lower highs and lower lows. From this we can assume that a wedge is forming. Probably, the downward movement will continue. The pair EUR/USD closed at 1.1176 on Friday. There is a strong level below 1.10 and it is likely to go there.


BRITISH POUND

The pound can’t get out of the downward trend in any way. Bad results of the negotiations on Brexit pushes the Bank of England away from possible introduction of negative interest rates. The risk of the GBP/USD pair price leaving to the level of 1.21 is increasing. There are no prospects for buying yet.


Gold

On Friday, gold rose by more than 1%. And that’s in just one day. This situation shows the power of bulls. Probably, in the near future there will be a breakthrough of the resistance level of $1750 per ounce and an attempt to get out of the sidewall. The current price of gold is $1742, which is very close.


What’s waiting for us today?

03.30 National Bank of China base credit rate
14.00 Statement by Bundesbank Head Weidmann
16.00 U.S. secondary housing market sales in May


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