Gold has led the rally for precious metals after attaining an all-time high of $2,052.70 and consolidating the high position. The rally by the precious metal has been triggered by several factors like the fiscal and monetary stimulus.
There are growing expectations that both sides of the political divide in the US will soon reach a deal regarding the Fiscal stimulus. The development has boosted both precious metals prices, stocks, and bonds.
Furthermore, the new high position correlates with a plunge in the global bond yield. Currently, the return on ten-year US Treasuries is almost hitting March lows at 0.50%. Elsewhere, Silver is also surging with XAG/USD pair standing at $26.
Confidence in the markets has been boosted by the coming trade negotiations between the global leading economies. After days of clashing, the powers appear to be going for a resolution, a positive indicator for the markets.
Covid-19 vaccine prospects turn markets green
The coronavirus pandemic resulted in a lot of job losses, turning the markets red. Any news of increased job opportunities is a positive signal for the markets. The upcoming labor report will highlight an increase of one million jobs created by the private sector. Such development will shape expectations for the official Non-Farm Payrolls.
The health crisis is currently dependent on a vaccine for things to go back to normal. In the US, a Maryland based company has indicated positive results in coming up with a vaccine. With companies indicating positive vaccine results, the stock market is showing green indicators. At the same time, the US coronavirus situation is impacting the stock market. In some states, the curve appears to be flattening, however with deaths surpassing 1,000 it might lead to some uncertainty.
Other dollar pairs at the foreign exchanges are showing some signs of recovery. For example, the EUR/USD pair is again topping 1.18 with July indicating a recovery. Additionally, Bitcoin has rallied cryptocurrencies to stabilize on the higher ground above $11, 000