FTSE 100 drifts as Gold drops through $3,200
|It has been another tough day for gold, while the FTSE 100 continues to struggle around 8600, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
US markets keep rising but Europe edges back
Investors continue to pile back into US markets, but European markets have seen some losses today. Having returned to record highs, the Dax looks vulnerable to some short-term selling, while the FTSE 100 seems to have a ceiling for the time being around 8600. Nonetheless, the tariff truce and cooling inflation should continue to underpin gains for stocks in the weeks to come.
Gold slumps below $3200
While the current ceasefire in the global trade war may do wonders for equities, it has proven to be a burden for gold. The price lost $3200 today, and overall the commodity continues to look like it is in for an extended period of consolidation. Fund flows should continue to favour US stocks in the short-term, and as the current ‘most crowded trade’ gold seems vulnerable as some investors reduce their exposure.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.