Daily summary: Gold prices hit by stronger Dollar

• Additional stimulus measures in Germany
• S&P 500 and Nasdaq approaching their ATH's
• BoE keeps rates unchanged
• Gold prices fell below $1800/oz

European indices extended recent gains as investors welcomed the news of additional stimulus measures in Germany focused on households and businesses affected by the pandemic. On the corporate front, Bayer stocks gained more than 4% after the pharmaceutical giant signed a $2 billion agreement to resolve future lawsuits over claims that its Roundup weed killer causes cancer. Also Deutsche Bank reported upbeat quarterly figures. Meanwhile Bank of England kept interest rates unchanged and lowered its forecast for the British economic growth for this year to 5% from 7.25% projected in November. Also policymakers ruled out negative interest rates for at least more six months saying banks would need that time to prepare for tis action.  On the data front, retail sales in the Euro Area came in above expectations, while construction activity fell into contraction in January. DAX 30 rose 0.9%, CAC40 gained 0.82% and FTSE100 finished slightly below the flat line.

All three major US indices are trading higher, with S&P 500 and Nasdaq approaching their record highs as investors assessed a new batch of corporate earnings and economic data. Initial jobless claims fell for the 3rd straight week to 779K, the lowest since 28th November. Meanwhile, quarterly figures from eBay, Paypal, Philip Morris; and Becton, Dickinson and Company came in above expectations while Qualcomm revenues dissapointed. On the stimulus front, Democrats are pushing forward with President Joe Biden’s $1.9 trillion Covid-19 relief proposal. Republicans proposed a smaller $618 billion package, which includes new stimulus checks of $1,000 per person.

US crude futures are trading 1.0% higher at $56.29 per barrel, while Brent contract rose 0.6% above $ 58.80 per barrel. Elsewhere, gold futures fell 2.2% to $1,792.00 / oz, while silver is trading  2.0% lower near $ 26.30 / oz amid a firmer dollar and higher US Treasury yields. Bitcoin is trading above $37,000 level.

USDJPY - optimism regarding the massive pandemic-relief package lifted the US treasury yields close to the highest level since March, which, in turn, drove buying into the greenback. This in turn caused the price of precious metals to fall. USDJPY managed to break above the 200 SMA (red line) during today's session and is currently testing resistance at 105.40. Should a break above occur, upward move could be extended to the 106.72 handle. Source: xStation5