The price of Gold is in focus today, rising due to haven demand or renewed risk appetite to a new all-time high price near $2,900 per ounce.
- Gold is making market headlines today as it continues its strong bullish rise to new all-time high prices. At the time of writing just before the London open, the price is sitting right on its high just below $2,900. Trend and momentum traders will be interested in being long of Gold now, and many analysts see a profit target at the next big round number of $3,000.
- Two other commodities remain in focus, having traded at or near new all-time highs towards the end of last week: Coffee and Corn. Coffee is the stronger bullish trend, having risen by more than 15% in just three weeks, and with a more long-term bullish technical picture. Most analysts are more dubious about the prospects for strong further gains in Corn. Trend traders will probably be interested in positioning long here. Although Coffee futures can be expensive, retail traders and investors can gain exposure to Coffee via the COFF ETF, although US taxpayers should beware this is probably a PFIC for tax purposes.
- In the Forex market, we are seeing price movement which is usually associated with risk-on sentiment: a weaker Japanese Yen and US Dollar, with the commodity and European currencies gaining. Since today’s Tokyo open, the British Pound has been the strongest major currency, while the Canadian Dollar has been the weakest.
- As was widely expected, the Bank of England cut its interest rate yesterday by 0.25%, from 4.75% to 4.50%.
- Yesterday, President Trump has announced that the USA will impose new 25% tariffs on all imports of Steel and Aluminum. This is expected to take effect by some time later this week.
- There are no scheduled releases of high-impact economic data today, so as it is a Monday, it will probably be a relatively quiet day in the Forex market.
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