Despite the looming threat of the COVID delta variant, markets showed signs of resilience and good momentum.
Gold remained wishy-washy at $1800 ahead of the European Central Bank’s (ECB) meeting to decide on its monetary policy. Even in the face of the US Dollar Index (DXY) easing due to optimistic market sentiments, gold was able to hover back to the $1800 mark.
The GBPUSD also managed to defend its position at 1.3700 amidst the uptrend in the DXY, higher corona infection count, and Brexit jitters. The EU’s decision to reject the paper submitted by the UK to alter the Northern Ireland protocol, didn’t affect the cable in any significant way either.
With the oil benchmark West Texas Intermediate (WTI) moving back up to $70 per barrel, oil price is also doing well and showing signs of a continuing bullish trend. The Organization of the Petroleum Exporting Countries’ (OPEC) ability to be flexible in its decisions and activities is good enough to maintain the price of oil at a higher level even if countries re-impose restrictions in the event of the delta variant posing severe risks.