The commodities front remains mixed as the U.S. dollar’s recent rally has put downward pressures on many resource prices. Furthermore, the ongoing bull run on Wall Street has prompted many investors waiting on the sidelines to jump into equities in lieu of chasing paltry yields in the bond market or lackluster returns in the commodities space [for more market news and analysis subscribe to our free newsletter]. Surprisingly, gold has managed to keep afloat in recent weeks amid the stock market euphoria, which is a commendable feat given the extreme selling pressures it saw earlier in April. The outlook for the yellow metal remains mixed, however, as technical patterns and currency market trends are hinting at another round of selling in the near future.
The bulls are at it again this week as stimulus hopes have taken center stage at home and in the eurozone. Investors on Wall Street continue to digest corporate earnings results, which for the most part are coming in better-than-expected; however, looming FOMC minutes and Friday’s monthly employment report will surely steal the spotlight this week. Overseas, investors are anticipating for the European Central Bank to cut rates down to 0.5% from 0.75%, potentially paving the way higher for gold prices as inflation fears return [for more market news and analysis subscribe to our free newsletter].