FOREX
The euro continues to strengthen versus the dollar during early Wednesday trading. The US is seen by many as having fallen behind Europe in its response to the health crisis and in the ability of its lawmakers to commit and deliver a much-needed economic rescue package. American assets are still well represented in many investors’ portfolios but given the current circumstances those investors may now turn to relatively under-priced European instruments in a dynamic that would further weaken the dollar against the single currency.
EURUSD chart
Ricardo Evangelista – Senior Analyst, ActivTrades
GOLD
Gold hits new record high (yet again)
It has been for a long time that we are seeing a structural movement in the bullion price with investors continuing to increase the percentage of yellow metal in their portfolio. The resistance level of $2,000 was disintegrated and the prices gained another $30 with gold achieving new records almost every day.
Technical levels are losing importance in this scenario, which is clearly dominated by a huge hunger for bullion. Investors are not considering technical indicators or the overbought scenario as they are simply buying gold hoping in some cases for quick gains, in others to hedge in case of further corrections of stocks and – particularly – in case of a significant depreciation of the US Dollar.
Carlo Alberto De Casa – Chief analyst, ActivTrades
