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Forex Today: Gold Hits 5 Month High Price

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.

The rally in precious metals continues, with the price of Gold reaching a new 5-month high yesterday above $1833.

      

  1. The long-term bullish trend in precious metals continues, with the price of spot Gold yesterday reaching as high as $1833, its highest price in 5 months. Both Gold and Silver are attractive to long-term trend traders in the long direction right now, as higher prices here are likely over the coming days.
  2. As the UK and Canada return from Christmas public holidays and global markets fully reopen, stock markets are mostly lower, although Chinese stocks in Hong Kong are bucking the trend, with the HSI enjoying a rally greater than 1% today. This is probably caused by optimism over China’s scrapping of covid quarantine requirements for new entrants.
  3. In the Forex market, the Australian Dollar is the strongest major currencies, while the Japanese Yen is the weakest right now. The EUR/USD currency pair is in a notable long-term bullish trend, and trend traders will be looking to be long here as this pair historically trends reliably, so higher prices are likely over the coming days.
  4. Treasury yields are rising on concerns China’s full reopening could lead to more inflationary pressure. US treasury yields rose but the rise has been most notable in Australia.
  5. Daily new global coronavirus cases fell last week for the first time in two months.  
  6. It is estimated that 68.8% of the world’s population has received at least one dose of a coronavirus vaccination.
  7. Total confirmed new coronavirus cases worldwide stand at over 662.7 million with an average case fatality rate of 1.01%.  
  8. The rate of new coronavirus infections appears to now be significantly increasing only in China, Guatemala, Japan, and TaiwanThere is concern that the spread in China is currently extremely rapid, with Japan imposing restrictions on new arrivals from China. 
Adam Lemon
About 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.

 

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