• Daily market commentary: The weather remains sunny on stock markets, but not for gold

    GOLD

    The weather remains sunny on stock markets, but not for gold. Indeed, after an excellent 2020, we are seeing a little storm on bullion, hit by the recovery of US yields and by the strength of the optimism that is dominating share trading. After five days in a row in red, we are seeing a small rebound attempt, despite the short-term trend remaining bearish. Technically the yellow metal has lost the support placed at $1,790 and could now target the next key zone, which is the low reached in late November 2020 at $1,764. A test of these levels will be crucial for understanding if the bearish pressure has ended or if gold fever is slowing down. Considering the massive monetary stimulus injected into markets by central banks, this second scenario seems unlikely.

    Carlo Alberto De Casa – Chief analyst, ActivTrades

    EUROPEAN SHARES 

    European benchmarks continued to consolidate on Thursday as investors fear rising bond yields will increase the cost of borrowing money and impact the short-term outlook of some companies and the broader stock rally in the medium-term. However, the long-term outlook for an economic recovery is much more positive and likely to support risk-on sentiment, making the current market correction a short pause before reaching new highs. Mining and tech shares are among the most resilient sectors today, while traders wait for results from banking and other cyclical values like EDF, Air France, Barclays and Credit Suisse later today. On the other side of the Atlantic, traders will pay close attention to macro US data (initial jobless claims, Fed manufacturing index and crude oil inventories) to see if the recent economic momentum is continuing.

    Pierre Veyret– Technical analyst, ActivTrades

    Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.

    The post Daily market commentary: The weather remains sunny on stock markets, but not for gold appeared first on LeapRate.

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