Wall Street rallies while Gold drops further

Chris Beauchamp IG

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.

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.