- Gold picks up a bid as the dollar loses ground against majors.
- The US stock futures rise, weakening the haven demand for the greenback.
- The recent stock market rally lacks substance, according to Goldman Sachs.
Gold is flashing green at press time with the greenback, yellow metal's biggest nemesis, feeling the pull of gravity amid signs of risk-on in the global equities.
The yellow metal is currently trading $1,711, representing a 0.16% gain on the day, having risen from $1,703 to $1,713 in the 60 minutes to 02:00 GMT. Prices fell by 0.12%, 0.96%, and 0.15% on Friday, Monday, and Tuesday, respectively - the metal's first three-day losing streak since mid-March.
Broad-based dollar weakness
The greenback is being sold across the board during Wednesday's Asian trading hours, as evidenced from the 0.30% decline in the dollar index, which measures the value of the greenback against major currencies.
Notably, the Japanese yen is trading at a six-week high of 106.54 against the dollar, and the growth-linked currencies, AUD and NZD, are reporting at least 0.40% daily gains.
The dollar weakness could be associated with the improved risk appetite in the financial markets, as suggested by the 1% gain in the futures tied to the S&P 500 index. An absence of fresh bad news is likely boding well for the risk assets and hurting the safe-haven dollar.
The risk assets, however, are operating on a shaky ground, as the breadth of the recent rally in the S&P 500 is quite narrow, according to Goldman Sachs analysts. If the stocks turn risk-averse, the dollar will likely find haven bids. However, gold, too, is expected to gain a bigger ground over the long run on account of the unprecedented monetary and fiscal lifelines launched by authorities across the globe.
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price treads water near $2,320, awaits US GDP data
Gold price recovers losses but keeps its range near $2,320 early Thursday. Renewed weakness in the US Dollar and the US Treasury yields allow Gold buyers to breathe a sigh of relief. Gold price stays vulnerable amid Middle East de-escalation, awaiting US Q1 GDP data.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.