Gold surges above 2,000 USD, seems unstoppable

As the US dollar continues to fall, precious metals are rising sharply. Earlier in the day, the EURUSD pair rose back toward the 1.19 mark, which helped to renew the buying frenzy in gold and silver and metals roared higher.

Gold was seen 1% stronger during the London session, trading at new record highs of 2,040 USD, while silver was 3% higher, changing hands at around 26.80 USD.

From other news, equities are also soaring higher as indices are rising to new record high amid signs of more stimulus. However, cyclical sectors such as aviation, cruising, restaurants, cars etc. remain in downtrends and they are nowhere close to their record highs.

Later in the day, the US ADP employment report is expected to show only 1,500K new jobs for July, which would be a large decrease from 2,400K jobs scored in June. As many more countries in the US are shutting down again, the unemployment rate will most likely worsen again.

Moreover, the non-manufacturing ISM is expected to ease to 55.0 in July, from 57.1 previously. Another sign that the V-shape narrative might not be happening at all.

Bond yields rose notably today and partly erased yesterday’s decline, with the 10-year yield rising above 0.5%. However, the long-term trend still seems bearish and bond investors are also not pricing any recovery at all.