DAILY MARKET REPORT - Wednesday, July 08, 2020 - Gold price climbed above $1,800, the first time since 2011


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Gold price climbed above $1,800 an ounce during the European session, the first time since 2011. The overall momentum remained bullish throughout this week as investors turned to safe-haven assets amid a spike in coronavirus cases in several countries across the globe.


US futures and European stocks trading lower on Wednesday while equities in Asian markets were mostly higher during the early session. The Shanghai Composite climbed 1.74% higher to 3403.44, gaining for the 7th consecutive session. On Tuesday. Wall Street closed lower, the Dow Jones Industrial Average ended 1.51% lower, the S&P 500 lost 1.08%, and the Nasdaq Composite dropped 0.86%.


Crude oil price trading slightly lower after API data released on Tuesday showed the US crude stockpiles increased by 2 million in the latest week. The Oil traders await the release of EIA crude inventory data due today.


The EUR/USD trading unchanged on Wednesday after the European Commission approved German plans to set up a fund with a budget of up to €500 billion for providing guarantees. The currency pair retreated to below 1.13 on Tuesday after the European Commission lowered its GDP forecasts for 2020 and 2021.


Gold price gained above $1800 on Wednesday supported by geopolitical tensions and increasing coronavirus cases in several countries including the US, India, Australia, and Spain.

Economic Outlook

Moving ahead today, the British pound traders will closely monitor Chancellor Rishi Sunak’s supplementary budget statement later in the day, following Prime Minister Boris Johnson's announcement last week of £5 billion infrastructure spending plans.

During the Asian session, Japan's Economy Minister Yasutoshi Nishimura announced new measures to curb the spread of Coronavirus infections.

On the data front, the Ivey PMI from Canada surged to 58.2 for the month of June, compared to the 50.2 that was forecast, indicating an expansion of manufacturing activities.

Coronavirus update:

US Covid-19 Cases Near 3 Million The number of people infected with the coronavirus across the world surpassed 11.83 million, of which around 544 thousand have died. The World Health Organization (WHO) Wednesday warned that a spike in global deaths could be expected given the surge in cases over the last week. Brazil Wednesday reported 45,305 new cases taking its total tally to 1,668,589. Its toll rose by 1,254 to 66,741.

“The outbreak is accelerating,” said World Health Organization (WHO) Director-General Dr Tedros Adhanom Ghebreyesus.

Technical Outlook

The yellow metal trading steady above $1800 on Wednesday and the next important level to watch $1810.


The important levels to watch for today: Support- 1790 and 1778 Resistance- 1810 and 1818.

GBP/USD: The currency pair retreat from the 3-week high and trading near 1.25 during the European session.


The important levels to watch for today: Support- 1.1240 and 1.1190 Resistance- 1.1320 and 1.1350.

Quote of the day: Good day traders do not have big swings or big losing days. A good day trader is very conservative and picks his spots closely- Edward Franco.

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