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Equities bounce, Gold pulls back from 2-month high


  • Stock indices have risen across the board today after last week’s declines
  • Gold has dropped as the risk-off sentiment has abated somewhat
  • JPY also retreats some of its recent gains
  • Bitcoin hits another all-time high

Stock indices are on the rise today after last week saw the largest intra-day decline in the US500 in almost 3 months as investors rushed for the exit door on Thursday amidst an increasingly uncertain geopolitcal backdrop. Despite breaching the week’s low on Friday the market found some buyers and they managed to recover the declines slightly with a green candle printed. 

The price of Gold dropped this morning as the heightened geopolitical tensions that triggered last week’s surge higher have eased somewhat. There’s not really been any peaceful developments that suggest a backing down from either the US or North Korea, but now the dust has settled a sense of calm has returned to the markets for now. A possible triple top around the 1292-1295 region could be forming and if we see a rejection here then the gains seen since early July when price traded down to 1205 look vulnerable. 

Elsewhere in the commodity space the price of oil is sliding with Oil.WTI threatening to break out of its recent range. The market has been coiling in a fairly tight consolidation pattern for the past couple of weeks as shown by the last 15 closes coming in the $2 range from 48.40-50.40.

 The Japanese yen along with the Swiss franc are by far among the poorest currencies in G10 basket which could be a result of ebbing geopolitical risks related to North Korea. What’s more gold prices are losing 0.6% as well, hence it might confirm at least a temporary end of a risk-off mode.

The Bitcoin’s price surged during the weekend and managed to smash a round $4,000 for the first time on growing optimism that faster transaction times would speed up the spread of the cryptocurrency. It’s worth recalling that the price of Bitcoin is up more than 40% in August, and more than 280% this year. Cutting to the chase, there was a plan to quicken trade execution by moving some data off the main network which was activated last week. The pace of Bitcoin’s rally is impressive. It first passed the $2,000 mark in May, and topped $3,000 for the first time in June.


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