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.
Chief analyst at ActivTrades and technical analyst for Italian newspaper 'La Stampa'. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a weekly commentator for CNBC Italy and a columnist for La Stampa. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a 250-pages book on gold and the gold market, followed in 2018 by a new updated edition.
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.