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The week continues to unfold with a solid recovery in the gold market, as the metal has already gained more than 6.0% in the past two sessions. The renewed buying pressure reflects, in part, fresh tensions between the United States and Iran.
Consumer sentiment fell at its fastest pace in three years, and to its lowest level since January 2021 according to the Conference Board. And chances are, weak figures are likely to appear in Friday’s University of Michigan’s (UOM) report. I take a closer look at both.
In a surprise move, US ratings agency Fitch downgraded the United States long-term credit rating to AA+, making it the second time in history that the US has lost its triple-A rating. S&P 500 futures gapped lower.
The US has lost its triple AAA ratings status according to Fitch Ratings agency, which saw S&P 500 E-mini futures fall around -0.6% at the open and spot gold rise around 0.6% from its cycle lows. We now have a bullish bias for gold over the near-term, although the success of its anticipated move to 1960 likely depends on the performance of the US dollar and how seriously traders take the downgrade to be.
We knew it was coming, but now it is official. Trump will run for the Whitehouse once more. But perhaps more pressing is today’s emergency NATO meeting.
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