Gold prices are continuing to rise during today’s trading and have recorded their highest level ever at $2,060 an ounce. Gold prices are rising as central banks around the world insist adopt stimulus policies and maintain extremely low interest rates. Just today, the Bank of England announced it was keeping interest rates unchanged at 0.10%, their lowest levels in history.
The US dollar has had a mixed performance against the other major currencies, but the index did rise slightly today to compensate for some of yesterday's losses and settle above 93 points. This came after weekly jobless claims data indicated another decline in US benefit requests from the level of 1.435 million to 1.186 million.
Traders are awaiting the release of US jobs data tomorrow (Friday) and expectations are that the unemployment rate may have decreased from 12.3% to 11.1%. Trading volumes usually decline on currency pairs ahead of economic data that impacts the dollar such as this.
The euro fell against the USD after German Health Minister Jens Spahn said resumed lockdown measures may be necessary in the country if the number of COVID-19 infections continued to rise. The euro fell against the US dollar from its high today at 1.1915 to 1.1820.
As for the pound, it traded between 1.3184 and 1.3109 with some volatility after Governor of the Bank of England Andrew Bailey confirmed that economic risks are still present for the UK. Although the Bank kept the interest rate unchanged, the governor confirmed the bank’s readiness to take all necessary measures to support the economy, even negative interest rates.
The Japanese yen traded in a range between 105.29 and 105.68 as traders waited for updates on the anticipated stimulus plan from US government.
Meanwhile, gold has touched levels above $2060.00 as it benefits from expectations that central banks around the world will continue their stimulus plans and pump huge amounts of liquidity into their economies. The uncertainty in the global economic growth forecast during for Q3 this year is keeping demand for precious metals high. Among the other precious metals, the price of silver rose today to its highest level since the March 2013, peaking at $28.44 per ounce.
US oil traded today within a limited range, between 41.60 and 42.63, as traders evaluate the decline in US stocks according to both EIA and API, and the risk that governments around the world will reinstate quarantine measures.
