It has happened – Gold hits an all-time high
After almost 10 years, traders finally saw Gold prices set a new all-time high.
Prices reached a high of $1,971 on Monday, as U.S. tensions with China continue to rise, in addition to the ever-growing rate of COVID-19 across the world which now stands at over 16 million confirmed cases.
Silver also rallied, hitting its highest level in 7 years. Markets are now looking toward Wednesday’s FOMC meeting to see if any further moves could be on the cards.
Some believe we could see prices reach $2,000, where do you stand?
U.S. consulate in China closes as hostilities grow
One of the main reasons for the recent flight to safe havens (gold), has been the growing tensions between China and the U.S..
As a result, today China ordered an American consulate be closed in retaliation to the U.S. closing the Chinese consulate in Houston last week.
The Chinese Foreign Ministry confirmed the news today stating that the U.S. consulate in Chengdu was closed.
U.S. markets still rose on the day with the NASDAQ climbing over 170 points or 1.65% as markets await earnings from FANG companies.
FTSE 100 falls as travel quarantine returns
Over the weekend it was announced that UK holidaymakers returning from Spain would face a 2-week quarantine.
This U-turn by the British government comes as COVID-19 cases begin to rise in Spain, particularly in Catalonia.
The two biggest FTSE listed companies impacted by the news were EasyJet and British Airways. Share prices in both companies fell by 9.0% and 7.5% respectively.
Quote of the day: “When I became a winner, I said, ‘I figured it out, but if I’m wrong, I’m getting the hell out, because I want to save my money and go on to the next trade.”Martin Schwartz
XAUUSD: After 6 consecutive days of being the “bull of the day”, Gold prices have now reached their highest point since September 2011.
UK100 (futures): The FSTE dropped to its lowest point in 20 days on the news that UK travellers will face new quarantine measures. This move led UK based airlines to drop as the tourism sector once again faces uncertainty.