Stocks and Gold rise in tandem

Chris Beauchamp IG

Heading into the close the FTSE 100 is up 30 points, while gold prices have risen once more, hitting a six-week high.

Stock markets heading for a strong end to the week
New record highs for Dax and Dow
Gold extends its positive run

New record highs are once again in evidence across markets, as the positive run for April so far continues. US markets have seen a slight slowdown in the momentum of earlier in the week, but this has been compensated for by solid gains in European markets, which have woken up after a mixed week. The good news continues to flow of both the corporate and economic fronts, after a very good start to the reporting season by the banks over the past few days. Now the focus becomes broader, taking in a wider range of sectors which will help investors develop a more coherent picture of the current state of the US economy. In London, while the FTSE 100 has been unable to match the bullishness of continental indices, it has nonetheless been supported by a wide range of stocks. This equity rally shows no sign of slowing, fortified by hopes of continued economic growth in coming quarters.

A six-week high for gold prices comes as the rise in Treasury yields abates, or at least slows down for the time being. The past three weeks have seen the most sustained advance in gold this year, and while there is still a lot of ground to make up the overall outlook seems much more promising for the metal. But with other assets like cryptocurrencies still drawing all the attention it looks like gold will have its work cut out for it.

Author

Chris Beauchamp

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