The charts that matter: gold up; dollar down

Gold rallied a little this week, while the US dollar drifted. Here’s how the charts that matter most to the global economy reacted.

In this week’s magazine we take a look at what investors can learn from the disastrous Deliveroo IPO. We also look at the luxury goods sector – which has proved surprisingly resilient throughout the pandemic and is set for “years of galloping growth”, says Stephen Connolly. He picks some of the best stocks to buy.

Merryn’s on holiday, so this week John has taken over podcast duties. He talks to investor, analyst and author Steve Clapham about many things, but in particular about why you really need to know what you’re doing when you pick individual stocks (and why even if you’re just investing in funds, learning about how to value a company is very useful). Listen to that chat here, and get a discount on Steve’s latest book The Smart Money Method, to boot.

Speaking of funds, this week’s “Too Embarrassed To Ask” video explains what an “ETF” – AKA exchange-traded fund – is. You can watch the video here.

Here are the links for this week’s editions of Money Morning and other web stories you may have missed.

Now for the charts of the week. 

The charts that matter 

Gold saw quite the rebound, back to its highest in six weeks or so. 

Gold price chart

(Gold: three months)

The US dollar index (DXY – a measure of the strength of the dollar against a basket of the currencies of its major trading partners) plunged back down – could Joe Biden’s big spending plan have had an effect?

US dollar index chart

(DXY: three months)

The dollar’s weakness doesn’t seem to have been reflected against the Chinese yuan (or renminbi) however – when the red line is rising, the dollar is strengthening while the yuan is weakening. 

USD/CNY currency chart

(Chinese yuan to the US dollar: since 25 Jun 2019)

The yield on the ten-year US government bond continued to drift downwards slightly.

US Treasury bond yield chart

(Ten-year US Treasury yield: three months)

The yield on the Japanese ten-year bond dropped back after the previous week’s big rise.

Japanese government bond yield chart

(Ten-year Japanese government bond yield: three months)

And the yield on the ten-year German Bund drifted along in negative territory.

German Bunds yield chart

(Ten-year Bund yield: three months)

Copper price chart

Copper, too, traded in a range.

(Copper: nine months)

And the closely-related Aussie dollar continued to struggle off its three-month low, and remains depressed.

AUD/USD currency chart

(Aussie dollar vs US dollar exchange rate: three months)

Cryptocurrency bitcoin is biding its time, presumably before it either goes on another wild charge upwards or plummets by 30% or so, giving everyone plenty to talk about.

Bitcoin price chart

(Bitcoin: three months)

US weekly initial jobless claims rose by 16,000 to 744,000, compared to 728,000 last week (revised up from 719,000). The four-week moving average rose to 723,750, up 2,500 from 721,250 (which was revised up from 719,000) the week before. 

US weekly initial jobless claims chart

(US initial jobless claims, four-week moving average: since Jan 2020)

The oil price is another one that’s drifting along sideways.

Brent crude oil price chart

(Brent crude oil: three months)

Amazon, however, was back, at the races.

Amazon share price chart

(Amazon: three months)

But Tesla is also sidling along quietly.

Tesla share price chart

(Tesla: three months)

Have a great weekend. 

Recommended

Why woeful US jobs data might spell higher inflation in the near future
US Economy

Why woeful US jobs data might spell higher inflation in the near future

The latest US employment figures were much worse than expected. And that matters not just for the US economy, but for global markets too – and for inf…
10 May 2021
The return to the old nine-to-five is a matter for business, not government
UK Economy

The return to the old nine-to-five is a matter for business, not government

Should we stay working from home or go back to the office? Whatever we decide, let’s keep Whitehall out of the question, says Matthew Lynn.
9 May 2021
The charts that matter: Amazon hits a bump in the road
Global Economy

The charts that matter: Amazon hits a bump in the road

Amazon shares slid back this week despite results surprising to the upside. Here’s what happened to the charts that matter most to the global economy.
8 May 2021
How will India’s Covid crisis affect the global economy?
Emerging markets

How will India’s Covid crisis affect the global economy?

The wave of Covid infections sweeping through India has sparked a humanitarian crisis. But with India’s economy the fifth-biggest in the world, could …
6 May 2021

Most Popular

Could you end up paying inheritance tax on your family home?
Inheritance tax

Could you end up paying inheritance tax on your family home?

The value of the average UK home has risen by 53% since April 2009, but the inheritance tax threshold has remained static. And that means more people …
7 May 2021
Big Tech on steroids: why the 2020s will be the “decade of the DAO”
Bitcoin & crypto

Big Tech on steroids: why the 2020s will be the “decade of the DAO”

Big tech companies have transformed the way we live our lives. But if you thought they were disruptive, you haven’t seen anything yet. As Dominic Fris…
6 May 2021
Why woeful US jobs data might spell higher inflation in the near future
US Economy

Why woeful US jobs data might spell higher inflation in the near future

The latest US employment figures were much worse than expected. And that matters not just for the US economy, but for global markets too – and for inf…
10 May 2021