Today, with limited macroeconomic data, we are seeing the effects of yesterday’s market movements where the U.S. Dollar Index (DXY) dropped, leading to gains in both commodities and risk assets. Gold hit a new all-time high of $2,567, and other commodities followed, with silver reaching the critical $30 level. Brent crude oil had a weak bounce from $70 but still appears to be under bearish pressure.
In the cryptocurrency space, Bitcoin remains above $58,000, with its strong correlation to U.S. indices (now at 0.85) aiding its rise from $52,000 to $58,000.
Given the lack of major events today and the anticipation of next week’s busy schedule, profit-taking seems likely across various asset classes. As a result, we could see some light selling pressure across all instruments as traders prepare for the three central bank meetings and key manufacturing data releases scheduled for next week, which are expected to influence Brent and other commodity markets significantly.
It will be interesting to see how markets position themselves ahead of these crucial events, as they are likely to shape the near-term direction for commodities and risk assets.
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