In the commodity market, oil prices are trading inside a narrow bullish channel. The COVID vaccine trials are supporting hopes that oil demand would revive. The optimism offsets the fears of new restrictive measures amid an increasing number of coronavirus cases. WTI futures are up 0.17% to $40.99, while Brent has gained 0.30% to $43.41.
Gold has broken above $1,820 as the aggressive stimulus from the EU and potentially from the US are propelling many investors to safe-havens in an effort to hedge against devaluing national currencies. The metal is up 20% year-to-date. The recent rally has gained momentum after Citigroup analysts said that gold would update the all-time high within up to nine months, probably breaking above $2,000.
However, it is Silver that stole the show, hitting the highest level in four years on Monday as a result of an impressive rally. The white metal is now up over 2.70% and trading above $20.740.
In FX, the US dollar has been somewhat bearish, as investors turned their attention to commodities and the euro amid vaccine optimism and the latest stimulus plan green-lighted by European leaders. The USD Index is moving sideways, currently displaying 95.808. However, after reaching the four-month highs, EUR/USD gave up and has dropped by 0.10% on profit-taking. Still, the pair is fluctuating above 1.1430 right now. Elsewhere, GBP/USD is up 0.03%.
