Gold approaches $5,000

The dollar is down as global risk appetite is up.
Gold enjoys central banks' support.

Alexander Kuptsikevich FxPro

History may rhyme, but this time it’s playing in fast-forward. Investors recognise how this tale ends. After Donald Trump backed down from his tariff threats against Europe, the “sell America” trade gave way to renewed appetite for U.S. assets. The dollar strengthened—but unlike the three-week rally in April and May, this rebound lasted just a single day.

The rebound in US stock indices from their April lows was strikingly swift. Simultaneously, non-residents hedged their currency exposure by selling dollars, a move that propelled EURUSD past 1.17—a level around which it has since consolidated.

Author

Alexander Kuptsikevich

FxPro

Alexander Kuptsikevich, a senior market analyst at FxPro, has been with the company since its foundation. From time to time, he gives commentaries on radio and television. He publishes in major economic and socio-political media.

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