In this article, investors will be able to read about the market sentiment about gold, forex, and all the important data you need to operate your account.
August 9, 2021, | AtoZ Markets –At Atoz Markets we have great specialists who will keep you informed about the main facts you need to consider when trading your forex account. In this article, you will find an updated summary of the world economic outlook and the trading opportunities it brings. Learn how to invest in the forex market and be a successful investor with AtoZ Markets.
- The market is concerned about new restrictions related to coronavirus in Asia.
- China could slow down its recovery and affect world economic figures.
- Global demand for fuel could decline.
- The United Nations warns about climate change
- Oil prices suffer
- Wall Street banks Goldman Sachs, JPMorgan, and Morgan Stanley cut their growth forecasts for China due to lower exports.
- Oil has been falling more than 9% in the last six sessions.
- WTI oil fell to its lowest level since May.
- Saudi Arabia posted a deficit of 4.6 billion riyals ($ 1.23 billion) in the second quarter.
- The Dow Jones Industrial Average has grown 23.46% this year and has been up 0.40% so far this month. In the last three months, it increased 113%.
- The S&P 500 has only grown 5.90% in the last three months. And so far this year it has only 18.9%.
What Happens with Dollar?
We started the week with a rebound in the US dollar, which reached a nearly three-week high against major currencies. Following Friday’s strong jobs report, the U.S. currency gained investor confidence.
Following the labor market figures, bets grew that the Federal Reserve could move more quickly to tighten monetary policy. Let’s not forget that a stronger U.S. dollar affects the oil price and hits correlated currencies.
Several Fed policymakers issued their comments thus affecting the price and giving investors confidence about the greenback.
The market will now focus on U.S. inflation figures to be released on Wednesday and will be watched for further clues as to when the Fed might start lowering its interest rates. Or when it will taper its support plan.
Other relevant news to watch was Janet Yellen’s call to Congress today to raise the current debt ceiling because failure to adjust the figure could lead to a default
Its Time to Buy Gold?
Gold is still in the red, and investors are now concerned about finding the best time to buy the precious metal. The price is currently down 15.04% so far this year, and in the last 5 days alone it has fallen 4.74%.
With a decline in the last three months corresponding to -5.76%. We must not forget that gold on average has marked an average annual profit of 8.1% over the last 50 years according to expert data.
Many investors are wondering if it is now that gold should be bought due to the current low prices, and the answer is that we should wait a bit until the weakness of the metal becomes clearer.
Current gold values show weakness, however, they do not yet confirm that purchases are entirely efficient and that the price could not continue to fall before strengthening again.
However, for gold to shine again it is necessary that the global economic recovery remains efficient, and that the dollar does not overflow in its price and the appetite of investors.
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