Market risk sentiment continues in a timid risk-on mode with no relevant economic figures released on the day.
Stock markets rise slowly, except the European indices held back by the increase in the number of infected, the announcement of a state of alarm in Madrid, and the probability that these measures will extend to other European capitals.
In this mixed scenario, the US Dollar is weakened by the outflow of capital that had previously taken refuge in the USD in terms of market risk. The North American fixed income has also continued to fall in price and rise in yield.
EUR/USD, with this weakness in the Dollar, has risen to slightly exceed the upper level of the range where it has traded in recent weeks at 1.1800. As mentioned in yesterday's overview, the single currency does not have much bullish momentum due to ECB members' declarations against a strong Euro as it represents a brake on their monetary policy objectives and their inflation target.
GOLD is benefiting from this mixed market situation concerning its risk sentiment. Though the bets in the stock market tilt towards a recovery caused by the implementation of fiscal stimulus policies, uncertainty remains at high levels due to different reasons such as the proximity of the North American elections, the lack of agreement on Brexit, the worsening of the epidemiological situation in Europe.
Another factor contributing to the rise of the precious metal is the weakness of the Dollar.
Technically, it is breaking a downtrend line that has been in place since early August and needs to break above the previous high of $1921 to pave the way to the concentration zone around $1950.
Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research.
Key Way Markets Ltd does not influence nor has any input in formulating the information contained herein. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.
Therefore, Key Way Markets Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.