Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
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And there we have it. Gold has officially crossed $4,000 for the first time in history, after hitting $3,000 just seven short months ago. The question asks itself: how long until the precious metal adds another $1k to its tally? The current macroeconomic environment remains good for gold. The Fed will continue to lower rates on the Dollar, forcing market participants to seek returns elsewhere, while investors around the world flock to safe-haven assets. Uncertainty persists around a number of geographic markers, including France, the Middle East and Ukraine, while central banks around the world continue to shun treasuries in favour of stockpiling more precious metals. Gold ETFs also reported record inflows in the third quarter of the year and trading volumes are exploding across the board. Even industrial demand is playing its part, although more so in silver, platinum and palladium than gold. Speaking of silver, the white metal remains perilously close to striking a record high of its own, but for the time being everyone is understandably focused on gold.
We finally have something to talk about in currency markets. The Dollar has regained some measure of strength in recent days and the DXY is now fast approaching 99. The situation unfolding in France has resulted in a loss of confidence in the Euro due to budget concerns. With the latest resignation of Sebastien Lecornu, the French parliament has now gone through three Prime Ministers in less than a year, and a total of seven during Macron’s combined presidencies. The Euro is down to $1.162 as of this morning.
In Japan, the recent leadership victory of Sanae Takaichi has prompted a significant flight out of the Yen. The new Prime Minister is expected to engage in much more aggressive economic policies in a bid to stimulate the Japanese economy and has been critical of the Bank of Japan’s recent rate hikes. The prospect of slower rate hikes has punished the Yen, leading to a 3% loss against the Dollar so far this week and driving USDJPY past 152 this morning.
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