Markets on recovery mode

Decent gains and consolidations were seen in the market suggesting a shift to recovery mode. The resilience is increasing the optimism among investors and the markets are expected to perform better in the coming days.

Despite the looming threat of the Delta variant, markets showed signs of resilience and good momentum.

Gold remained wishy-washy at $1800 ahead of European Central Bank’s (ECB) meeting to decide on its monetary policy. Even in the face of US Dollar Index (DXY) easing owing to optimistic market sentiments, Gold was able to hover back to $1800 mark.

GBP/USD also managed to defend its position at 1.3700 amidst the uptrend in DXY, higher corona infection count, and Brexit jitters. EU’s decision to reject the paper submitted by UK to alter the Northern Ireland protocol also did not affect the cable in any significant way.

With the oil benchmark WTI moving back up to $70 per barrel, oil price is also doing pretty well showing signs of continuing bullish trend. OPEC+ ability to be flexible in its decisions and activities is good enough to maintain the oil price at a higher level even if countries re-impose restrictions in the event of Delta variant posing severe risks.