Gold approaching an all-time high
Exactly a week ago, Gold was trading at $1,794, however after one of its biggest rallies in history, the metal now trades above $1,900.
In breaking the $1,900 barrier, Gold reached its highest level since September 2011. On that occasion the price went to a now record high of $1,921, many now believe this could soon be broken.
Many also believe that the growing rate COVID-19 cases, as well as the political tensions between the U.S. and China have pushed investors into the safe haven asset.
DAX drops despite strong Eurozone data
As we near the end of the month, it appears that business activity in the Eurozone has rebounded strongly in the month of July.
PMI data which gauges if a sector is growing (above 50) or contracting (below 50) came in above 50 across various industries including manufacturing and services.
July Composite numbers hit a 54.8, indicating that economic activity within the EU has grown for the first time since February.
Despite this seemingly good news the DAX still fell to its lowest level in 10 days on the back of geopolitical tensions with China.
EU joins UK and U.S. in hostilities with China
Today the EU announced that it will limit tech exports to Hong Kong which could be used by the Chinese government for “repression or mass surveillance” of its citizens.
Many believe this comes as a direct response to a new law imposed by China on Hong Kong, all 27 EU members agreed to further sanctions, and a review of visa agreements with China.
This is said to be one of the major causes for the DAX dropping to a 10 day low of 12,768 today.
Quote of the day: . “It’s not whether you’re right or wrong that’s important, it’s how much money you make when you’re right and how much you lose when you’re wrong.”George Soros
XAUUSD: Never before has one market been the “bull of the day” for 5 consecutive days, however Gold has won the honour, the metal broke $1,900 for the first time in 9 years.
GDAXI (futures): The Dax continued to fall on Friday, as the EU agreed to hit China with trade sanctions. The 10 and 25 day moving averages also crossed downward, showing there could be more bears still to come next week.