- Precious metals are in strong focus as they all continue to rise strongly. Notable highlights:
- Gold reached a new record high a little below the round number at $3,900. It looks quite likely to eventually continue to the really big round number at $4,000 which would likely trigger some profit-taking by long trade holders.
- Silver also rose strongly to reach a new 14-year high above $47.15, putting the 2011 record high price just below $50 in sight. There is much speculation that Silver will soon test this high, given the momentum generated by its recent meteoric rise.
- Platinum is also rising very strongly and reached a new 12-year high price yesterday. Although Platinum futures are too large for most retail traders to safely trade, exposure to the price of Platinum can be obtained via the PPLT ETF which is affordable.
- Trend and momentum traders will be interested in being long of these precious metals.
- In the Forex market, the US Dollar has weakened as speculation mounts that the US will soon be undergoing a government shutdown. The Australian Dollar has been the strongest major currency since today's Tokyo open, with the Swiss Franc the weakest, showing risk-on sentiment. There is also focus on the EUR/USD currency pair, which made a substantial bullish breakout two weeks ago by closing at a new 4-year high price, but is now trading considerably lower. It is rising again, like most of the USD pairs.
- The Reserve Bank of Australia held its Official Cash Rate steady at 3.60% earlier today, as was widely expected, by unanimous vote. The Aussie seems to be strong anyway on general risk-on sentiment, so it is hard to say whether this has helped to boost the value of the Australian Dollar.
- WTI Crude Oil has fallen over recent hours after US President Trump released the terms of the Middle East peace plan that seems to have been more or less agreed upon by Israel and Arab countries with leverage over Hamas. This news will lessen regional tensions somewhat, which had lately begun to rise around Iran due to the snapback sanctions and other issues. WTI Crude Oil dropped by almost $1.80.
- There will be a release today of US JOLTS Job Openings data which will be closely watched.
Forex Today: Gold Powers Towards $4,000
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 with...
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Precious metals, notably Gold, continue to rise strongly, as Gold gains to reach a record high price near $3,900.
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.