Gold, stocks and oil set the trend for the market

Published on: 18-May-2020
Category: Trading
Last updated: 18-May-2020

Gold, stocks and oil set the trend for the market

On the markets for gold, oil, cryptocurrencies, but also on the stock market, you can see prices rising.

In gold, this continues a trend that has last since the beginning of the global corona crisis in February. The precious metal is considered a safe haven in bad times, when securities are too risky and the security of the currencies seems threatened. In dollars, the gold price has reached its highest value since October 2012. At that time, the European sovereign debt crisis was at its peak and investors had lost confidence in the euro. In 2011, an troy ounce cost about $ 1900, reaching its all-time high. With a plus of one percent and a price of $ 1764 per troy ounce of gold, the price is heading for the record. In euros, the gold price has now even reached its all-time high of 1,631 euros per troy ounce.

But even if the gold price rises in times of crisis, rising prices in other markets are no indication of a loss of the precious metal. Because the oil market also has positive data, which indicates increasing demand and thus a recovery of the economy. Today, Monday, US light oil rose to over $ 30 a barrel. The course has thus increased the 19 percent gain from last week. North Sea Brent has also risen to $ 34.31 since the middle of last week.

And not only gold and oil were able to take profits, but Bitcoin also had a positive trend after halving. During the night from Sunday to Monday, the price rose to over $ 9,900 and fell to $ 9,670 during the day. Bitcoin has recently been used in other markets as an indicator of rising prices as it reflects investors' risk aversion.

The good mood of investors can be seen on Wall Street. The three major stock exchanges, Dow Jones, S&P 500 and Nasdaq, posted gains of 0.25 to 0.8 percent last week. And at the start of the week, the leading German index, the Dax, is up almost three percent.


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