US Index Futures Limit Up. USD Weakness Drives Gold Rally
US Index Futures were up 5% earlier today triggering a limit up. Yesterday we talked about the USD index and how some dollar weakness might be needed to support markets and provide a liquidity relief. The Fed came to the rescue once again, with their unlimited QE announcement.
Meanwhile Congress managed to disappoint markets again by failing to reach a deal on corona virus stimulus for a second time. Is today going to be the day? We will find out, but again rumors are that a deal is close.
The following chart will show you how a bit of Dollar weakness can set markets free.
Gold June Futures
The low for Gold yesterday, before the Fed announcement was made was 1490. Since then the market has rallied and earlier today it stopped just below 1700. The high for the year stands at 1707.1. A continued Dollar weakness could potentially send the market towards new highs of the year.