Gold Up, Oil Down & All-time Highs for US Indices

Gold hit a three-week peak on Thursday after minutes from the Federal Reserve’s latest policy meeting reassured investors that interest rates will remain low for some time, pushing the dollar and U.S. yields lower. 

Spot gold rose 0.5% to $1,746.21 per ounce by 14.13 GMT +2 having earlier hit a high since March 18 at $1,751. Since then, spot gold is up again and U.S. gold futures gained 0.5% to $1,750.20 yesterday and is now at $1,746.70 at 11.00 GMT +2.  

Fed policymakers remain wary about the ongoing risks of the coronavirus pandemic and are eager to reach employment and inflation goals, minutes of the U.S. central bank’s latest policy meeting showed on Wednesday.       

The dollar fell against major rivals, while benchmark Treasury yields also eased, making gold more affordable as well as appealing compared with alternative investments like bonds. 

Silver rose 0.8% to $25.33 per ounce, having hit a more than two-week peak of $25.48. Palladium added 0.2% to $2,628.20, while Platinum climbed 0.4% to $1,230.56. 

The U.S. economy, boosted by quickening vaccinations and signs of rapid hiring, is headed toward a strong recovery, Federal Reserve Chair Jerome Powell said Thursday. But he cautioned not all will immediately benefit. 

In the energy market, oil prices fell after official figures showed a big increase in US petrol stockpiles, causing concerns about demand for crude weakening in the world’s biggest consumer of the resource at a time when supplies around the world are rising. Brent fell 22c to $62.94 a barrel. US crude lost 37c to $59.40 per barrel.   

Taking all this into account, keep an eye on the Metal and Energy market for the right opportunity to trade. 

In other news, the Dow Jones is leading the way as old-school stocks continue to generally outperform. Currently at 33,555, it is up 9.47% YTD. Other stock market indices continue to rally higher with the US 500 at a record high and the US Tech 100 closing in on its previous record, the Volatility Index VIX also moved lower, reaching the lowest level since the start of the pandemic in the continuous contract. The performance in other markets was however mixed, with the China A50 index at a new two weeks low, while the Germany 30 index traded mostly side-ways and failed to make new advances after reaching a new record at the beginning of the week. 

On Friday from the US PPI data as well as statistics on wholesale trade and inventories can be expected. Canada will publish its unemployment rate statistic for March. 

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