Gold prices rallied on Friday’s trading session, amid selling pressures witnessed on the U.S dollar Index, coupled with high hopes on the latest fiscal U.S. stimulus package coming from the world’s largest economy.
At the time of writing, the precious metal futures gained over 1% to trade at $1917/ounce, surging above the $1.900-mark.
On the political spectrum, discussions between the Speaker of the U.S House of Representatives, Nancy Pelosi, and Treasury Secretary Steven Mnuchin resumed yesterday, coupled with President Donald Trump disclosing that talks with U.S lawmakers have resumed, despite the ban he placed on the ongoing stimulus package deal before the presidential election.
In addition, Trump boosted the morale of global investors, with his latest interview talking on the high probability of reaching a consensus over the stimulus deal. For her part, Pelosi said that legislation would support the American aviation industry which had been negatively affected by the COVID-19 resurgence.
In an explanatory note to Nairametrics, Stephen Innes, Chief Global Market Strategist at Axi, spoke on the prevailing market condition boosting the yellow metal prices. He said:
“Gold is trading higher due to stimulus expectations, but the yellow metal is getting held back by the prospects of higher US yields and the Euro offering little support for Gold while trading below 1.1800.
“While the “Blue Wave” stimulus deluge is favorable for Gold, the resulting US treasury curve steepened not so much.
“The World Gold Council gave also gave the precious metal the needed boost via its statement that gold-backed, ETFs gained more than 1,000 tons of bullion worth $60 billion at current prices to their stockpiles during the first nine months of 2020, catalyzing a price rally.”
Ether on record high as European Investment Bank launches digital bond on Ethereum
Ethereum traded at $2,703.06 on the FTX exchange with a daily trading volume of $33 billion.
The world’s utility crypto has broken new highs skyrocketing to a new all-time high on reports that the European Investment Bank is creating a “digital bond” sale using the Ethereum Blockchain.
At Wednesday’s trading session, Ethereum traded at $2,703.06 on the FTX exchange with a daily trading volume of $33 billion. Ethereum is up 3.00% for the day and the utility crypto currently has a market value of $313 billion at the time this report was drafted.
For the week, Ether has gained about 12% amid strong buying pressures from crypto traders and global investors. In a report credited to Reuters the €100 million (roughly $121 million) digital bond issuance of two-year notes sales will be led by Societe Generale, Goldman Sachs and Banco Santander.
The European Investment Bank joins a number of leading institutions that have entered the cryptoverse lately, using crypto technology for debt issuance.
Ethereum was founded in November of 2013 by Vitalik Buterin and has recorded over 1200% gain in the past year, attracting a lot of developers and apps amid the bullish trend playing out in the crypto market.
Ether’s love among institutional investors is based on its high utility fundamentals. The DeFi is the hottest and the trendiest thing in the cryptoverse since 2020. Ethereum blockchain also maintains the leadership status as almost all DeFi projects are based on Ethereum blockchain.
Oil prices surge over China’s growing appetite for energy
British based contract ticked up by 0.3% to trade at $63.59 a barrel while the WTI futures edged near $60 a barrel.
Oil prices rallied high at the second trading session of the week as data from the world’s second-largest oil consumer’s (China) import growth picked up coupled with rising tensions in the Middle East after rebels from Yemen disclosed that they fired missiles on Saudi’s energy infrastructure.
At the time of writing this report, the British based contract ticked up by 0.3% to trade at $63.59 a barrel while the West Texas Intermediate futures edged near $60 a barrel.
The world’s second-largest economy recorded impressive gains for last month in yet another boost to China’s economic recovery as global demand gained momentum. Crude oil imports into China surged by 21% in March from a low base of comparison a year earlier.
Stephen Innes, Chief Global Market Strategist at Axi in a note to Nairametrics spoke on the parabolic of the energy market, as oil traders seem to be uninspired on the resurging COVID-19 virus;
“The oil market’s magnetic attraction to the $63 level should tell us much about the near-term outlook amid conflicting signal of new Covid waves coming to shore ahead of what should be a summer gasoline buying bonanza.
But overall, this is an oil market that feels completely uninspired outside of a few micro lurches here and there.
Still, positive comments on the US economy from Fed Chairman Powell help to reassure the outlook for oil demand, balancing concerns about the continued spread of Covid-19 in some regions.”
What to expect
Recent price actions suggest oil traders might hold the $60 a barrel baseline in the near term even if U.S Treasury yields surge while struggling to resolve with what form and fashion the next leg of the reflation trade will take.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- 2021 Q1 Results: FTN Cocoa Processor Plc reports loss after tax of N162.21 million
- Tantalizers Plc reports a loss after tax of N97.75 million in FY 2020 in Q1 2021.
- Courteville Business Solutions Plc proposes final dividend of 3 kobo per share for FY 2020.
- 2020 FY Results: UPDC Real Estate Investment Trust records over 500% growth in Profit after tax.
- Sovereign Trust Insurance records a 43% surge in profit after tax to N392.1 million in Q1 2021.