Crude prices are rallying as the reflation trade continues and as the COVID situation improves in Europe. Brent is eyeing the $60 level now that OPEC+ has successfully eased most supply side concerns and optimism on the COVID front improves globally.
Oil was unfazed by the disappointing employment report but did catch a bid once the dollar dropped. The fundamentals remain solid for crude, but a consolidation seems likely given the recent runup.
Gold prices got a much-needed boost following a disappointing nonfarm payroll report that cemented the need for more fiscal and monetary stimulus. Gold is trying to hold the $1,800 line and that could be the case if the dollar rebound is over. The technical selling that is building for gold is significant and could trigger a drop towards the $1,750 level. Gold is nearing a death-cross but strong longer-term stimulus fundamentals should alleviate concerns that a complete abandonment of safe-havens is upon us.
Bitcoin is rallying after a disappointing jobs report signals more stimulus is likely. A thorn in Bitcoin’s bullish outlook this year was a rebounding dollar, but that could be over. Bitcoin is eyeing another run towards $39,000 and if it is successful, momentum trading could easily have prices settle above the $40,000 level. If retail and institutional interest continues to grow over the next month, Bitcoin could target the $45,000 level.
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