It’s all about Gold this morning, with the commodity seeming like the gift that just keeps giving. It was a monumental day for gold, crossing the $2000 level and continuing to move higher as we type.
Prospects of more stimulus to combat the pandemic’s fallout has kept the Gold abreast as the White House and Democrats will look to strike a deal on a stimulus package in the coming days.
Does gold have a top? As Google searches for “buy gold” reached record highs, the precious metal surged forwards overnight, with Spot opening the market at $2,025 and the derivatives market indicating an uptrend trend in gold’s future path.
The plummeting real yield continues to drive the gold surge, backed by investor fear over fiscal and monetary policy’s inability to stem the economic fallout of the pandemic. We expect the gold rally to continue its upwards trajectory, until the rhetoric of rising interest rates out of major Central Banks are on the cards once more, or global economic growth is seen to stabilise.
USD/ZAR continued on it’s upward trend yesterday with the local unit getting hammered, but opening a touch firmer this morning. The continuation of broad based USD weakness seemed to have helped the local unit with the pair trading flirting around 17.23 currently.
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