Blog: You, us, everyone

Today, the EUR moved closer to parity against the USD; with one euro trading for about $1.025, its lowest level since 2002. Many analysts have said it is only a matter of time before the euro reaches parity with the dollar. The European economies struggle with high inflation, labor unrest and turmoil in energy markets. The next major support after parity is around 0.9750/0.98 – which is truly feasible as geopolitical tensions to stay high (but not going much worse), and are likely to push gas prices up further, increasing inflationary pressures.

In the same context, gold is down by around 3.5 %! The safe-haven metal lost appeal as short-term interest have gone up and the geopolitical tensions have about reached a plateau. Technically speaking and on the back of stop-loss strategies, precious metals may remain under pressure for some time ahead.