Daily market commentary: Gold is slightly up in the early trading

GOLD

Gold is slightly up in the early trading, while volatility remains low. The spot price was unable to surpass the first key level of $1,895, continuing a slow dance just above $1,890. It seems investors are in a wait and see mode as they are still hoping for new stimulus from central banks to help the economy’s recovery. Meanwhile, they are carefully following US politics and the approaching presidential election in early November, trying to predict what impact it will have on US monetary policy and consequently on the US dollar and the gold price.

From a technical point of view, bullion remains in a lateral trading range between $1,850 and $2,070, waiting for a clear new direction.

Carlo Alberto De Casa – Chief analyst, ActivTrades

EUROPEAN SHARES 

European equities traded higher on Thursday, alongside Asian benchmarks and Futures on the S&P 500, as optimism about a new US stimulus package continues to sustain market sentiment. Investors’ risk appetite continues to grow as US lawmakers move closer to a new deal, while yesterday’s minutes from the last FOMC meeting also showed further support from US central bankers may also be on its way and this is helping to drive stocks higher everywhere. It is interesting to note that while the EU already successfully reassured investors by providing an unprecedented fiscal and monetary stimulus response earlier this year, most EU stock traders are focusing solely on the latest developments in the US, despite record infection numbers being registered on the old continent (France, Italy and Spain). Increased market volatility is expected this afternoon as the ECB’s Monetary Policy Statement as well as the Initial Jobless Claims data in the US loom. Today’s best performances come from Madrid with financial and energy shares leading the IBEX-35 Index higher, inside its major resistance zone around the crucial 7,000pts level.

Pierre Veyret– Technical analyst, ActivTrades

The post Daily market commentary: Gold is slightly up in the early trading appeared first on LeapRate.