Gold Advances as Risk-Off Mood Takes Over

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1. Gold Advances as Risk-Off Mood Takes Over  

Safe-haven spot gold did not disappoint and rallied higher up as investors sought to brace against an oncoming bear market and might now attempt to challenge its recent 6-year high. XAU/USD was last seen trading 0.5% higher at $1425.01 as of 7:55 GMT this morning.*

 

2. Oil Prices Edge Slightly Higher

Oil prices edged slightly higher on Wednesday morning after recording a steep fall in the previous session. Oil prices remain supported by extended output cuts by OPEC and its allies despite concerns that a slowing global economy could reduce demand.**

 

3. Trade Optimism Withers

Asian markets closed mixed on Wednesday morning as market optimism over the US/China trade talks started to fade further. The hopes for a China-US deal keep markets afloat even though a number of indicators are pointing towards a potential bitter end to the present economic phase the global economy is in. Politically, one could say that chaos has become somewhat the new normal, with the EU’s play about the leadership candidates, the neverending UK Brexit saga, Iran said to be exceeding Uranium limits, and Hu-Xijin posting about how the mood of the Chinese people against the US appears is tipping towards enmity.***

 

4. US Bourses to Wobble

U.S. stock index futures were mixed Wednesday morning, as escalating global growth concerns weighed on investor confidence. Today we will have a shortened trading day in the US ahead of tomorrow’s 4th of July holiday. The ISM non-manufacturing in the US might be the most important event on the day.**

 

5. Forex Preview: USD Recovers

The USD recovered some of its early morning losses today after US yields declined. Currently, the greenback is trading mostly subdued but has gained some momentum especially against a weaker GBP. The EUR also remained below the 1.13 level with very little movement. US/EU trade tensions are expected to continue to weigh on the common currency.****

 

6. Bitcoin Survives Another Sell-Off

Elsewhere, bitcoin recovered after breaking even below the 10k level intraday. BTC closed above the $10,400 level yesterday and rallied further overnight, therefore the immediate bearish outlook of the recent days seems to have been overcome. *****

 

You can find and trade CFDs on all of the above-mentioned assets on BDSwiss Forex/CFD platforms.

 

Sources:
*FXStreet Jul 3, 2019 03:07 AM ET
**Reuters Jul 3, 2019 3:53 AM ET
***CNBC Jul 3, 2019 2:48 AM ET
****Bloomberg Jul 3, 2019 06:13 AM ET
*****Investing Jul 3, 2019 06:13 AM ET

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