Gold scores 60-day top while greenback falls

Weekly Report - 30/12/2019

Gold Climbs


The popular safe haven metal Gold surged to its most powerful level in more than 60-days today while the greenback fell and US military blows in the Middle East pushed investors towards the safe-haven metal. On Sunday the US military conducted successful airstrikes in Iraq and Syria toward an Iran-backed militia organization, driving market uncertainty, and geopolitical pressures. US gold futures were fixed at $1,517. Spot gold climbed 0.3% to $1,514.92 per ounce. Earlier in the session, gold hit its most important level since Oct. 25 at $1,515.79. Gold is acknowledged as a safe investment in events of geopolitical and economic uncertainty.

Week that was

The greenback hovered near a half a year top versus the safe-haven Japanese yen. As the USD was growing stronger the Australian dollar too advanced to its most important level since July last Friday, boosted by positive indications from China-US trade matter. The belief concerning potentialities for a Phase 1 trade agreement reduced the demand for safe-haven currencies like the yen. But, with global currency markets in a holiday mood following Christmas Day on Wednesday, the general trading action was mostly limited.


Main Focus This Week

It’s a moderately active day on the economic calendar, following last week’s calm. German retail sales concurrently with Spanish 3rd quarter GDP numbers and preliminary inflation will probably give us a view on how the sector will proceed. We can anticipate the German retail sales numbers will have the biggest impact on the day. Any soft figures ahead of German unemployment numbers at the end of the week will question the EUR’s current rally.

What is positive is that a phase 1 trade deal will boost the German economy that has been in a difficult position through 2019.


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