Daily summary: Covid-19 cases rise as investors flee towards gold and silver

8:08 PM July 8, 2020

Global equities markets have been dominated by some mixed moods today. Some Asian indices finished the session lower while others added some gains like Shanghai Composite (+1.74%). However, one should keep in mind that coronavirus now seems to be more or less under control there. European indices were more consistent as most of them ended the day into the red. DAX lost 0.97% and CAC finished the session 1.24% lower. American equities have been fluctuating heavily. As upbeat moods dominated the market open, U.S. stocks suddenly turned negative. At press time all major indices from America are trading higher again, Nasdaq is leading the gains (+1.00%). 

As declines on global stock markets seem to be justified amid the ongoing Covid-19 turmoil, American investors seem to run against the grain. Especially if one takes U.S infections spike into account. Untied States reported over 60,000 thousand new infected people which is the new daily record. Moreover, President Trump ramped up to get public schools to fully reopen this fall.

Silver prices are soaring once again, currently gains exceed 2.50%. As a result silver touched crucial resistance zone ($18.80). Moreover, after finally breaking above $1800 price level gold is surging as well. The yellow metal prices have reached levels last seen in 2011.

In terms of economic calendar, today’s trading day was rather light. The only event that might have shocked some market participants was EIA’s weekly report. The data showed unexpected crude oil inventories build-up while analysts estimated that stocks would diminish. Oil prices are currently gaining over 0.60% 

Tomorrow one should be particularly interested in German trade balance as the reading surprised investors a month ago. Thursday means that the U.S. Department of Labor will release its jobless claims report. Apart from that, Canada will publish its housing starts and building permits for the month of June. With no distinct “market-moving” events ahead of us, one should still pay attention. Today’s EIA’s report shows that investors and traders should be prepared for any circumstances.

Silver has been trading in an upward trend in recent days. As investors clearly flee towards silver and gold amid the ongoing uncertainty, silver prices reached crucial resistance zone ($18.80). These levels were last seen before the pandemic began. Should the price break above now, one might focus on $19.60 resistance zone. Source: xStation5

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