Stocks, Gold and Bitcoin take heart from Waller comments

Chris Beauchamp IG

Dovish Fed speakers continue to give equities and gold a foundation to rally, while pushing the dollar lower, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

More Fedspeak keeps equities supported

Today it was the turn of Fed governor Waller to keep equities supported, as he struck a relatively dovish note, the second to contrast with Warsh’s more dovish tone. If the idea is to keep investors guessing, then the Fed is succeeding, but so far the data appears to lean towards the dovish argument. But as was the case 24 hours ago, everything rides on tomorrow’s payrolls and then next Friday’s inflation readings. Equities aren’t out of the woods yet.

Gold recoups losses on weaker dollar

Gold has seen a seesaw week, but the Fed commentary has helped it back to where it was on Monday, after a brief dip yesterday below $4300. Digital gold is recovering too, with bitcoin back knocking on the door of $80,000 once more. From the looks of the chart the dollar is back in a solid downtrend, and a weak payrolls report tomorrow would certainly help it on its way.

Author

Chris Beauchamp

Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.

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