Crude Oil Gains to Persist; Stocks to Stay on Their Rocket: Q3 Top Trading Opportunities
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Q3 Top Opportunities Overview:
Despite some twists and turns, the first half of the year was indeed about the growth story, and heading into 3Q’21, it appears that the tune will remain the same.
The long US equities story is set to continue into the second half of the year.
As long as the bull case for global growth remains, then energy should be in strong demand.
Growth Story Remains Strong
Central banks remain accommodative even as they signal the end of crisis-era efforts; fiscal authorities continue to provide support with further government spending increases anticipated out of both Europe and North America; and rising vaccination rates, and high efficacy of existing vaccines, suggests that the delta variant story is becoming a ‘wall of worry’ for markets to climb in the second half of 2021.
Silver Price Forecast: Twirling Towards Freedom - Levels for XAG/USD
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Monthly Forex Seasonality - July 2021: Good for Gold, US Stocks; Bad for US Dollar
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Gold Q3 Fundamental Forecast: Outlook Deteriorates for Gold Prices
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Q3 Gold Forecast Overview:
Shifts in the US Treasury yield curve, on balance, suggesting a period with stronger short- and intermediate-term rates, has been consistent with a stronger US Dollar and weaker gold prices.
The expectation that the combination of loose monetary policy and expansionary fiscal policy will soon end has started to strengthen, for two main reasons.
Over the past five years, gains by US real yields have been generally correlated with losses by gold prices.
Rising US Real Yields are Problematic
It’s been said before, but it’s more important now than in months past. It’s important to view recent price action across asset classes through the lens of asset allocation and risk-adjusted returns. Gold, like other precious metals, does not have a dividend, yield, or coupon, thus rising US yields – importantly, real yields – are problematic.