Gold updated nine-year high! | 07 Agosto 2020

Gold updated nine-year high!


#DAX30:


Positive macroeconomic statistics from Germany signal an uptrend in the German stock market. IHS Markit's Final Purchasing Managers' Index for manufacturing, which accounts for about a fifth of the economy, rose to 51.0 in July, rising above the 50 mark that separates growth from contraction for the first time in 19 months. "Nevertheless, with new orders up sharply in July the immediate outlook for production looks positive, and the manufacturing sector remains on course to make a strong contribution to an expected technical rebound in the economy in the third quarter" Phil Smith, economist at IHS Markit said.


Trading recommendation: Buy 12600 and take profit 12850


Gold updated nine-year high!


#SP500:


Democrats and Republicans are negotiating a new $1 trillion stimulus package. Both sides said over the weekend that the talks are proceeding positively and there is a high likelihood of reaching a consensus this week. US Federal Reserve has kept interest rates at the same level. D. Powell said that continued fiscal and monetary support will be required to restore economic growth. Based on Powell's speech, we may soon see a new portion of fiscal and monetary stimulus. This is a positive signal for the American stock market!


Trading recommendation: Buy 3277 and take profit 3325.


Gold updated nine-year high!


XAUUSD:


Gold updated nine-year high! There is a strong trend on the market! Why is this happening? Let us remind you of the precious metal pricing principle. Gold pricing, in addition to supply and demand for physical metal, is associated with the expected level of inflation and the expected level of interest rates in the United States. Gold theoretically has a constant value for paper money, so when money depreciates, the price of gold in dollars rises, which we observe this year. Now the real interest rate in the US is -0.35%. This is a positive signal for gold!


Trading recommendation: Buy 1955 and take profit 1988

 

David Johnson
Analyst of «FreshForex» company
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