Wall Street rallies while Gold drops further
|While US stocks are enjoying more gains, gold's weakness has been one of the factors hobbling the FTSE 100, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.
Wall Street hurtles to new highs but FTSE 100 drifts
Expectations of a US-China deal have underpinned today’s bullish sentiment on Wall Street, where the Dow, S&P 500 and Nasdaq have all hit fresh highs. US companies have sailed through earnings season so far, trouncing estimates in robust fashion, proving the endless calls of a bubble are misplaced. It’s been a more subdued day in London, with the FTSE 100 failing to march to a fresh record high, but with gold under such heavy pressure and little news on the company front, the index seems likely to consolidate its recent gains rather than continue its strong run.
Gold slumps below $4000
The selling continues to snowball in gold and silver, barely two weeks after the price reached a record high. The momentum trade in precious metals had delivered the goods in recent weeks, but such rallies often reverse dramatically. The drop should be welcomed by most investors, both for offering the chance to buy at lower prices and for taking some of the undoubted speculative froth out of the situation.
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