ActivTrades’ Market Analysts prepared their daily commentary on traditional markets for April 2, 2020. This is not a trading advice. See details below:
The US Dollar Index, which measures the performance of the greenback versus a basket of other currencies, was pretty much flat during early Thursday trading. Recently investors had sought refuge in the dollar, with the fallout from the coronavirus creating a very risky trading environment with losses across nearly all sectors. Today however that move towards the dollar is on hold, with all eyes and ears on the US jobless claims due to be published later. Should the numbers mark an improvement on the record 3.3 million new claims released last week, we will probably see a growth in risk appetite which, in the current context, could incite greenback losses. On the other hand, if the new jobless claims number is within last week’s ballpark, fear is likely to once again take over and offer further support to the dollar.
Ricardo Evangelista – Senior Analyst, ActivTrades
The gold price is languishing just below $1,600 in a market where volatility seems to be decreasing, at least temporarily. There are no clear directional signals in this phase as gold is facing a mixed set of fundamentals. Investors are worried by the possibility that central banks will reduce their purchases, while also jewellery and industrial demand could decline. They are unsure that investment demand will grow enough to offset this loss.
As mentioned in previous reports, one factor that doesn’t yet seem to be fully priced into the markets is the huge liquidity input that central banks are preparing and this could be a supportive element for the bullion price in the next few months.
Carlo Alberto De Casa – Chief analyst, ActivTrades