Market sentiment analysis:
- Trader confidence is high ahead of Friday’s US non-farm payrolls number, with assets such as gold, crude oil, stocks and the Canadian Dollar all benefiting.
- Longer term, the focus remains on inflation and whether rising consumer prices will persuade the global central banks to tighten monetary policy..
Advertisement
Trader confidence high
Traders are buying into assets such as gold, crude oil, global stocks and ‘risk on’ currencies like the Canadian Dollar ahead of Friday’s US employment report. As the chart below shows, the gold price, for example, has topped the $1,900/ounce level to reach its highest price since January 8.
Gold Price Chart, Daily Timeframe (December 21, 2020 – June 1, 2021)
Chart by IG (You can click on it for a larger image)
| Change in | Longs | Shorts | OI |
| Daily | -4% | 1% | -2% |
| Weekly | 9% | -15% | -4% |
In this webinar, I looked at the trends in the major currency, commodity and stock markets, at the forward-looking data on the economic calendar this week, at the IG Client Sentiment page on the DailyFX website, and at the IG Client Sentiment reports that accompany it.
Recommended by Martin Essex, MSTA
Get Your Free Gold Forecast
--- Written by Martin Essex, Analyst and Editor
Feel free to contact me on Twitter @MartinSEssex
