π₯ What's Up with Gold?
Gold prices hit an all-time high, and other need to know news πΊπΈ
HeyΒ Global Investor, here's what you need to know before the US markets open.
Market Snapshot π
S&P 500Β (Monday Close) 3,239.41Β +23.78Β (0.74%)
NASDAQΒ (Monday Close) 10,536.27Β +173.09Β (1.67%)
FTSE 100Β (5 PM IST) 6109.69Β +4.81 (0.07%)
NIFTY 50Β (Today's Close) 11,300.55Β +168.75Β (1.52%)
USDINRΒ (5 PM IST) 74.85Β (1 Year +8.59%)
π₯Gold Prices HitΒ an All-time High
Growing concerns about the Covid-19 pandemic and its effect on the global economy is drivingΒ investors to look for the traditionalΒ safe haven.
What Happened?Β On Monday, Gold prices rose to a record-high $1,944 an ounce, beating a decade-old record of $1,921 (2011). The demand for the yellow metal continues to surge, as evident from the 27% YTD growth.
There are two critical factors behind the growth:
Investorsβ preference to park their money
Dwindling yields on the US government bonds
Analysts feel the record run may not be over yet, and the price could cross the $2000 mark before the year-end. A weakening dollar and rising tensions between the US and China could further rally the gold price.
The Federal Reserve will likely maintain lower interest rates for foreseeable future to support economic recovery. The decision has weakened the US dollar, currently trading at a 4-month low against the Japanese Yen and a 22-month low of 0.85 Euros.
The US economic recovery is under pressure as it struggles to control the coronavirus outbreak. The number of cases and deaths continues to rise at an alarming rate, and several βstaggeredβ reopening projects have stalled. Jobless claims are mounting, and the expiration of unemployment benefits on Friday might bring a fresh set of problems for consumer spending.
Gold Snapshot (GLD ETF)
GLD $182.21 +3.51Β (+1.96%)
GLD ETF: Indian residents can now buy physically-backed gold ETF (GLD - SPDR Gold Trust)Β listed in the US withΒ Winvesta. Unlike physical gold, buyers do not have to pay sales tax and thick spreadsΒ on buying GLD. There is also much greaterΒ liquidity and safety in GLD investments compared to physical gold.
NewsworthyΒ π°
Up 'N' Up!:Β Nikola Stock Rallied 11%. Hereβs Whatβs Behind It. (NKLAΒ +10.96%)
See You Next Year!: Google will Keep Employees Working from Home Remotely until July 2021 (GOOGLΒ +1.41%)
Eye-catching!:Β Shares of US-listed Chinese Search Engine Sogou Pop 48% after Tencentβs Takeover Offer (SOGOΒ +48.00%)
Later TodayΒ π
6.30Β pm IST: Case-Shiller national home price index (year-over-year)
7.30Β pm IST: Consumer confidence index
7.30 pm IST:Β Home-ownership rate
Before Market Open: 3M Co EarningsΒ
After Market Close: Advanced Micro Devices (AMD) Inc. Earnings
After Market Close: Amgen Inc Earnings
Fun Fact of The DayΒ π
The Word Physics Comes from the Greek word, 'PhysikαΈ,'Β Which Means 'Science of Nature.'
You can start investing in US stocks with platforms like Winvesta. Get an account in as little as 15 minutes and start building your global portfolio today.
