Wall Street under pressure but Gold rallies again

Chris Beauchamp IG

Nervous investors have resumed selling US stocks, while gold continues to shine as a haven against tariffs and political uncertainty, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Europe higher but US markets slump again

The Dax briefly returned to its record high today ahead of the news that Germany’s parliament had voted in favour of groundbreaking stimulus measures, but otherwise investors have remained cautious. The gains made since last Thursday’s low in US stocks are rapidly slipping away; traders are evidently still in ‘sell the rally’ mode, even though today has been thankfully free of any tariff headlines so far.

Gold touches new record

There’s no stopping gold at present. It has ceased to be the store of value against inflation and now revels in its role as a safe haven against political volatility. Further gloomy US economic data might well fuel the next leg to the upside. Oil remains volatile, with WTI failing again to make any progress above $68.

Author

Chris Beauchamp

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold holds above $5,000 as bears seem hesitant amid Fed rate cut bets

Gold edges lower at the start of a new week, though it defends the $5,000 psychological mark through the Asian session. The underlying bullish sentiment is seen acting as a headwind for the bullion. However, bets for more rate cuts by the Fed, bolstered by Friday's softer US CPI, keep the US Dollar bulls on the defensive and continue to support the non-yielding yellow metal as the focus now shifts to FOMC Minutes on Wednesday.

Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.