Equities up on trade war pause but Gold slips

Chris Beauchamp IG

The pause in the US-China trade war has seen stocks soar, though gold continues to struggle, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Markets soar as Trump blinks on tariffs

The weekend meeting between the US and China has yielded yet another 90 day pause, lighting a new fire under the market rally. The rebound from the April low was beginning to look a little tired, but today’s news has given it new life. The longer Wall Street continues to rebound, the harder it will be for investors to avoid putting money back to work in the US, even though worries remain that the data will start to deteriorate in the months to come.

Gold heads back to $3,200

The news might have been great for stocks, but for gold it means more pain to come in the short-term. Gold prices tend to flatline in May and June, and hopes that a more practical approach to trade policy will prevail in Washington mean that one key plank of gold’s rally has been removed, at least for the time being.

Author

Chris Beauchamp

EUR/USD climbs to two-week highs beyond 1.1900

EUR/USD is keeping its foot on the gas at the start of the week, reclaiming the 1.1900 barrier and above on Monday. The US Dollar remains on the back foot, with traders reluctant to step in ahead of Wednesday’s key January jobs report, allowing the pair to extend its upward grind for now.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold treads water around $5,000

Gold is trading in an inconclusive fashion around the key $5,000 mark on Monday week. Support is coming from fresh signs of further buying from the PBoC, while expectations that the Fed could turn more dovish, alongside concerns over its independence, keep the demand for the precious metal running.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.