Is the Bull Run for Gold Over?

Much has been said about the bull market in precious metals as gold rose 40% from March lows to August highs, while silver notably outperformed that and posted a 150% increase in the same time-frame. All this happening within 6 months is very impressive.

However, since August highs, both metals are plunging – gold is lower by 10%, and silver by 25%. That’s understandable, considering the steep rally in metals over the previous months.

The million-dollar question is; what happens next?

The big drop in gold and silver has primarily been driven by dollar strength. The dollar index hit a two-month high on Wednesday. Investors have moved to the USD due to more…

Admiral Markets adds USDMXN to 40+ Forex pairs!

USDMXN trading

Dear traders,

You asked, and we delivered – in response to an increasing number of requests, Admiral Markets is expanding its Forex offering to include another new currency pair:

  • USD/MXN – The US dollar crossed with the Mexican peso

The MXN ranks eight in global liquidity, behind the USD, the Euro, the Japanese yen and the British pound, and its most popular currency pairing is with the US dollar. However, it still offers great opportunities for traders wanting to speculate on Central American markets.

This latest addition to the suite of instruments available in our Trade.MT5 account brings more…

What is the relationship between plague and assets?

The new corona-virus that originated in China and swept the world has attracted the attention of most people, it had influence on the trend of many financial assets at the same time. Then what is the relationship between different financial assets and the plague?

  1. Stock indices and individual stocks. As far as the stock index is concern, the essence of stock indices is “multiple stocks in each industry / local currency”. We have noticed that many funds call for “the world belongs to the optimists” and “buy stocks”, but they are not really optimists. During epidemics or wars, the purchasing power more…

Dollar is looking for the bottom

Dollars

EURUSD

American dollar continues to pull back and now this looks like capitulation. Its decrease identified against most assets, while USD index lost around 1.2% for more than last 24 hours, reaching the main support levels. The bulls may upset by the fact that coming news is not making favor for American currency. Advance GDP, released yesterday, was worse than expected. The first three months got 0.5% yoy against expectations 0.7% yoy. This is hardly visible 0.1% in usual for us estimation. Contrary to this growth of European economy reached 0.6% as released by Eurostat today. Though, the expected growth was only more…

A creeping dollar

Bull-NYC

EURUSD

The pair is slowly sliding down, recovering the previous growth and formatting the expectations for the further more serious turn. The possibility of such scenario will rise when (and if) EURUSD breaks the support line of the climbing channel that appeared at the beginning of March. Currently, there is a threat that pair will drop below 1.1300, 50 points lower from the current prices. However, it is difficult to find among macroeconomic news the only one, which is strong enough to move market from the current trend. Strong data from the non-production USA sectors in March influences market less than usual more…