Despite gold’s accelerating gains, and the heavy losses in the travel sector, the European markets were fairly placid on Monday.
Rising 2%, gold is now trading around $1938 per ounce, adding another unprecedented aspect to a truly novel – as in novel coronavirus – 2020.
Investors don’t buy the precious metal for fun. It provides an ostensible financial safe haven away from the world’s uncertainties and stresses, of which at the moment there are numerous. This doesn’t just include the covid-19 pandemic, but the latest geopolitical flare-up between the United States and China.
It’d make sense, then, for Europe to be in a panic-stricken mood. Instead, the region’s indices aimlessly bobbed about, with the FTSE down 0.3% but the DAX actually up around 15 or so points.
The Dow Jones is set to echo this limp performance when the bell rings stateside, with the futures pointing to a 0.1% increase.
The Dow may want to enjoy the peace while it lasts. The US is facing an incredibly busy week, aside from covid-19 and US-China tensions, with the latest Federal Reserve meeting on Wednesday, the first Q2 GDP reading – which is going to be UGLY – on Thursday, and a stacked earnings calendar including appearances from the golden trio of Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN).
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