- Gold has risen very strongly over the past three and a half weeks on risk-off sentiment, breaking its usual positive correlation with stock markets, which have mostly weakened meaningfully over this same period. Last Friday saw the price close above the big round number at $2k, making a new 5-month high price, but it is the all-time high at $2,070 that looks to be the most technically significant level. I will look to get involved on the long side if we get a firmly bullish daily close above $2,070.The price of Crude Oil is weakening as it seems that despite Israel’s ground invasion of Gaza, the war has yet to widen, triggering more optimism that this war might be contained.
- This week will be an important week in the Forex market and in other markets too, with policy meetings scheduled at the US Federal Reserve, the Bank of Japan, and the Bank of England.
- Stock markets are generally lower, after the NASDAQ 100 Index closed Friday at its lowest level since May.
- In the Forex market since the Tokyo open, the strongest major currency has been the Australian Dollar, while the Swiss Franc has been the weakest, suggesting that risk sentiment is improving so far today.
- The prices of some soft commodities have continued to rise significantly, with both Cocoa and Sugar futures either reaching or close to new long-term highs.
Forex Today: Gold Remains Strong Near $2,000
Adam Lemon
Gold has been the standout market performer of recent weeks, having closed last week above $2,000 and remaining strong into this week so far.