Gold is extending its loss in the general risk-on scenario with investors betting on riskier assets, trying to achieve quicker gains. Moreover, the US Dollar is continuing to recover, and this is causing the bullion price to decline. Growing expectations about a relatively quick end to the pandemic are raising hopes on the economic recovery hopes and with it the likelihood of central banks reducing the current hyper-dovish monetary stimulus.
OIL
Ten months ago, WTI plummeted to -$37 per barrel. Now it is trading around $90 higher even though the pandemic has not ended. Investors are betting on a relatively quick economic recovery, supported by central banks’ stimulus, and this has further lifted the oil price in the last few hours, marked by a general risk-on sentiment on markets. From a technical point of view, the clearing of $54 has opened spaces for new rallies, as the scenario remains supportive for WTI, which just reached a 12-month-high.
