- The price of gold is reaching a new 4-month high yesterday above $1910 per ounce. This bullish price action suggests that the price is somewhat likely to rise higher still over the coming days.
- Global stock markets are still broadly bullish, but yesterday’s action was mixed.
- In the Forex market, the British pound is the strongest major currency, while the U.S. dollar looks likely to be the weakest major currency today. However, the GBP/USD currency pair is likely to have a quiet day today, as it is a public holiday in both the USA and the in the UK.
- Although cryptocurrencies seemed to have bottomed out after falling very sharply last week, the price action in major cryptocurrencies is looking significantly bearish again, suggesting that lower prices are likely. Key support areas to watch are $30k for Bitcoin and $2k for Ethereum. These cryptos may be worthwhile buys if they bounce at these levels, but if the levels are fully broken, that will be a very bearish sign. If Bitcoin breaks below $30k it could easily reach $20k quickly.
- Last week saw a fourth consecutive weekly fall in global new confirmed coronavirus cases and deaths, suggesting that the current wave of the pandemic is starting to retreat. The effects of the vaccination programs in the most developed economies are now being felt.
- Total confirmed new coronavirus cases worldwide stand at over 171 million with an average case fatality rate of 2.08%.
- The fastest progression in terms of immunizing a population against the coronavirus in all but the smallest states have been in Israel and Bhutan, which have given at least one shot to 63% of their entire populations, followed by the U.K. at 58%. For most of the world, a vaccine still remains distant. However, the pace of vaccination in the European Union, which now has immunized 38% of its population, has picked up significantly. In the U.S., 50% of the population has been vaccinated.
- The rate of new coronavirus infections appears to now be increasing most quickly in Afghanistan, Algeria, Bahrain, Bhutan, Bolivia, Cambodia, Chile, Colombia, Dominican Republic, Haiti, Kuwait, Malaysia, Saudi Arabia, Taiwan, Trinidad, U.A.E., and Vietnam.
Forex Today: Gold Makes 4-Month High, U.S. Dollar Rebounds
By Adam Lemon
Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Markets are mixed, with gold and the British pound the strongest assets right now.