Gold Continues to Create History
The unfortunate events in Beirut yesterday fuelled commodity prices on Wednesday, as markets continued to rally.
Gold once again reached a new high at $2,055 as investors continued to seek shelter from the current market uncertainty. The metal rally now sees gold prices trade over $130 above its previous high in September 2011.
As gold rose, so did other commodities. Crude oil extended yesterday’s rally by climbing to as high as $43.42, the highest it has traded since March. Silver prices also reached a 7-year high.
Service Sector Grows, as Private Employment Slows in the U.S.
Another contributor to today’s gold rally was the disappointing ADP private payrolls numbers.
The report highlighting the number of workers hired by private sector companies showed that payrolls increased by 167,000 jobs in July.
This was a significant drop from June’s number which came in at 4.3 million. Markets were expecting roughly around 1.5 million in July.
Cushioning the blow of this announcement, was the news of the services sector growing by its highest level since March 2019. The reading for July was 58.1.
Disney Gains as Markets Digest its Q2 Earnings
Shares in Disney rose after markets had the opportunity to react to last night’s Q2 earnings report, which was released after the closing bell.
Disney gained close to 9% to reach its highest level since the Pandemic began in March. Declines in revenue for its parks and digital platforms were not as bad as initially feared.
The company’s newly launched Disney+ streaming service recorded over 60 million subscribers, a feat the company expected to reach by 2024.
Quote of the day: “Throughout my financial career, I have continually witnessed examples of other people being ruined by a failure to respect risk. If you don’t take a hard look at risk, it will take you.”Larry Hite
XAUUAD: Gold once again reigns supreme, climbing to as high as $2,055 in today’s session, after beginning the day close to $1,999.
USDCHF: Led by the downward cross of the 10 and 25-day moving averages across the 50-day, USDCHF fell to a day’s low of 0.9050 after starting at 0.9134.