After driving significantly higher last month, gold prices found it difficult to keep the momentum. They were put under further pressure as they wrong-footed trades in favour of the strong US dollar. This morning, gold continued its impressive reversal from earlier lows. Indeed, it got very close to the gold price’s record-setting high of $3,390 per troy ounce during the last trading session. Analysts point to a partial rebound in the precious metal’s price. They caution it will soon meet opposition at about $3,400.
Bank failures and current market dynamics have put gold on a knife’s edge. We can easily see that the US dollar has been relatively strong, something that usually results in downward pressure on gold prices. Moreover, contradictory developments in the US money market have added to the confusion over gold’s direction. Investors are observing a wave of profit-taking, putting an additional headwind on gold’s prospects to continue its bullish momentum.
In global foreign exchange markets, the EUR/USD currency pair has kept declining. It still hangs below the 1.1600 zone and has failed to turn around any powerful comeback. The duo does not miss the opportunity of consistently pushing the pair below the 1.1600 level. This continuing phenomenon underscores the euro’s relative weakness against the dollar.
GBP/USD has been holding on quite well. Retreating from the session-highs near 1.3500, GBP/USD has since cut deeper earlier losses and is now making a notable recovery towards 1.3400s midpoint. At the time of writing, it’s sitting right on that 1.3450 line again. This change represents the first indication that traders are less bearish on the British pound.
Within the bounds of the global supply chain, most significant gains have occurred across the cryptocurrency sector. Cronos, Numeraire, and Hyperliquid pumped hard as the biggest winners. Boy did they rally, significantly kicked by a hoard of bullish specific and market wide news, momentum and momentum. Numeraire shot up after clinching a massive $500 million commitment from JPMorgan Asset Management. This increase has significantly improved investor appetite and confidence.