Gold Hits Highest Level Since 2013
XTB | Jan 07, 2020 05:34
Tensions in the Middle East continue to be the dominant theme for markets at the start of a new week with Oil prices pushing higher, safe haven assets such as Gold and government bonds gaining and stock markets pulling back. Brent crude has moved back above the $70 mark to trade at its highest level since September while you have to go all the way back to 2013 to find a higher price for Gold, with the precious metal trading above the $1580/oz mark overnight.
Today’s economic calendar is fairly light with the main data points coming in the form of PMI releases from across Europe. There’s a couple key events later this week with the ISM non-manufacturing PMI tomorrow one to watch before the main event Friday at 1:30PM (GMT) where we will get the release of the final US jobs report for 2019.
Overall the final services PMI readings from the Eurozone are pleasing with a Euro-area wide print for December coming in at 52.8 vs 52.4 expected (prior reading was 52.4). While this may not seem too impressive by historical standards it does mark the 3rd consecutive month in which this metric has topped estimates and also means that the composite PMIs are showing some encouraging signs after sustained weakness since the start of 2018.
Having said that, the data does mean that according to these surveys the final quarter of last year was the worst since 2013 - when the bloc was in the midst of the debt crisis! The readings are also commensurate with a GDP growth figure of just 0.1% and show that economic activity in the Euro area has pretty much flat-lined.
In the UK the final services PMI release for December came in at 50.0, against a consensus forecast of 49.1 and a prior reading of 49.0. Similar to the Euro area figures this is the 3rd monthly beat in a row and also means that despite 3 sub 50 prints in the past 12 months, we are yet to see consecutive readings in contractionary territory. It is also the second month running that the final readings have been revised higher from the initial flash releases, suggesting that while the UK economy is far from firing on all cylinders, perhaps things are not quite as bad as some make out.
The pound has received a further small boost from this, after already beginning the week higher against all its major peers and is attempting to gain traction back above the $1.31 handle once more.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.