Gold’s rally has lost steam just below $2,000 an ounce and trading gold amid the pandemic becomes increasingly popular.
Fears about the economic fallout from soaring COVID-19 cases and economies suffering deepest contraction on record force investors to take a step backwards.
The euro touched $1.19, its strongest since May 2018 as the dollar extended its dramatic fall sending the common currency higher.
Japan and Germany are among the large economies for which analysts’ GDP forecasts were too optimistic, facing steepest contraction on record.
Amid a surge in coronavirus cases fueling demand for riskier currencies, financial markets expect Federal Reserve to hold fire on fresh steps. —– This month’s spike in infections having forced some states to make a U-turn on reopening their economies. Rising infection rates are leading some analysts to predict strong forward guidance from the Fed on further policy actions. Four U.S. states in the south and west reported one-day records for coronavirus deaths on Tuesday and nationwide cases stayed high. United States struggles to contain a spike in coronavirus cases, dashing hopes for a quick economic recovery. Dollar bears bet FED could hint of other ways to loosen policy further down the road. Investors will also be watching for any indications the Fed will increase its purchases of longer-dated debt. Also, it is of great interest whether Fed will implement yield caps or target higher inflation than previously indicated, building on recent …