Forex Today: Gold Hits $2265 Per Ounce - 01 April 2024

The precious metal Gold traded at a new all-time high a few hours ago.

  1. Gold ended last week at a record high, and rose significantly further during today’s Asian session, trading as high as $2265 am ounce. Gold tends to be positively correlated with risk assets, many of which are currently enjoying rallies to new highs. Some analysts see Gold as boosted by Friday’s Core PCE Price Index data which suggested falling inflation in line with expectations.
  2. The Japanese Yen remains weak, but the USD/JPY currency pair has not retested the record high it made very recently just below ¥152. Japanese financial officials will likely threaten intervention if ¥152 is tested again, but it seems likely that the price won’t fall very far, giving traders potential opportunities to trade that range. Trend traders will still be interested on being long of the USD/JPY and in being short of the Japanese Yen in general.
  3. Stronger than expected Chinese Manufacturing data released a few hours ago boosted the Chinese Hang Seng Index, but many Asian stock indices are ending the day lower.
  4. The minor commodity Cocoa continues to look very bullish. The commodity superfood has almost tripled in value over the last year alone, with many analysts suggesting supply side shortages are at least partly to blame for the meteoric rise. There is more and more demand for Cocoa every year as it is coveted as a key ingredient for chocolate but also as a superfood in its own right. Trend traders will be interested on the long side, although which such high volatility and sharp gains, it could come crashing down at any time, so trend traders must be careful to use a disciplined stop loss if going long. As well as Cocoa futures, there are Cocoa ETNs available which may be more suitable for retail traders and investors.
  5. There will be a release of US ISM Manufacturing PMI data later today.

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Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.


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