Precious metals explode higher; stocks drop amid new virus strain restrictions

It looks like another volatile week, with Monday’s trading already off the charts for some assets.

Silver and gold exploded higher, with silver rising 6% before correcting some of the gains and gold adding nearly 1%. More importantly, silver rose above 27 USD and gold tagger 1,900 USD.

Meanwhile, equities sunk, and US indices were half a percent weaker during the US session, erasing Friday’s gains. 

The new wave of volatility came after many EU countries halted flights from the UK amid the new virus strain, ravaging southern parts of the Kingdom. The new strain is 70% more infectious, which could pose another huge threat to the already overwhelmed hospitals. 

From other news, the U.S. Congress reached an agreement on Sunday on a 900 billion USD package to provide new aid for people hit by lockdowns. The new fiscal help came months after the first one expired. Although the “number” is low, it is better than nothing, and since the situation is worsening everywhere, the US Congress might increase the amount later.

In the FX, the dollar advanced notably today as traders are closing their short positions, with the risk-off trading benefiting the safe-haven greenback. The EURUSD pair slipped below 1.22, and the USDJPY pair was up 0.3%, despite plummeting US yields. 

The Cable suffered a big hit and was down nearly 2%, trading at around 1.3280

Source: https://www.axiory.com/market-news/precious-metals-explode-higher-stocks-drop-amid-new-virus-strain-restrictions