Gold simply refuses to stop hitting new highs. Yesterday marked the latest step on the record-breaking path, which saw the precious metal reach highs of $2,685 per ounce on the intra-day. There are a number of bullish arguments for bullion at the moment, as central banks around the world begin to cut interest rates in earnest, with the promise of more to come. Silver also made a bold move on Thursday, stepping up to $32,71 an ounce before settling lower. Traders would have to go all the way back to 2012 to see those same prices.
Another factor is of course the recent stimulus package courtesy of the People’s Bank of China, which is also working wonders for the Hang Seng Index, which surged over 4% yesterday to levels not seen since August of last year.
In the US, the S&P 500 index closed 0.4% higher on Thursday to a new record high of its own. The Dow Jones Industrial Average and Nasdaq Composite also fared well thanks to better-than-expected economic data, both gaining around 0.6% on the day. The record-breaking trend even extended to Europe, where the German DAX also hit an all-time high after climbing 1.7% over yesterday’s session.
The week is not over yet however, later today the PCE price index will attract a decent amount of attention, not least from the Fed itself. If proposals for further rate cuts are to be believed then the latest batch of inflation data will certainly factor into future decisions.
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