MORNING BRIEFING: Gold hits new record high above $1,050. Dollar loses more ground ahead of BoE and ECB.

[RTFX-Trading]

MORNING BRIEFING: Gold hits new record high above $1,050. Dollar loses more ground ahead of BoE and ECB.

What’s new:
Precious Metals: Gold reaches new record High!!
Australia: Jobs data beats expectations for job cuts, with 40’600 jobs created instead.
ECB & BoE meetings scheduled today.

Today:


Overnight Rates and Indices:
EURUSD: 1.4775 – 1.4682.
USDCHF: 1.0334 – 1.0271.
GBPUSD: 1.6017 – 1.5950.
EURJPY: 130.52 – 129.99.
USDJPY: 88.71 – 88.17.
DowJones: 9'725.58 -0.06%.
NASDAQ: 2’110.33 +0.32%.
S&P 500: 1’057.57 +0.27%.
Nikkei: 9’832.47 +0.34%.
Shanghai: 2’779.43 +0.90%,
Gold: $1052.84
Crude Oil: $70.29
 
Comments:

Gold topped $1,050, reaching $1,054.54 per ounce, to mark a record high for the third session in a row on Thursday as the dollar's continued struggle made the precious metal more attractive to investors. Bullion has gained about 20 percent this year, aided by the dollar's weakness and inflation worries following the measures taken by central banks and governments around the world which poured money into the financial system to help stimulate the economy.

The US dollar struggled again in early Thursday trading, as stronger than expected jobs data from Australia, pushed the Aussie to a fresh 14 month high. The Australian economy created 40’600 jobs in September beating expectations of a 10’000 job cut. The unemployment rate also fell to 5.7% against expectations for a record 6% unemployment rate. The greenback lost ground across the board falling to 1.4775 versus the Euro, to 1.6017 against the Pound, to 88.17 against the Yen and 1.0271 against the Swiss Franc.

The focus shifts on the ECB and BoE meetings later today, with the rate decision from the UK expected to be announced at 13:00 CET and the European decision at 13:45CET. With rates expected to remain unchanged, the focus will be mainly on the tone of the ECB President regarding the strength of the Euro.

Have a nice day.

Emman Xuereb

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