Gold (GLD) is barely holding the $4,000 per ounce level. Prices peaked at the end of January at $5,318. It previously benefited from the weak U.S. dollar (UUP), rising oil prices, and excess demand to hedge against weak currencies.
The gold price continued to “fade” throughout the second quarter. Its roughly 25% decline marks a drop not seen in 13 years. Selling accelerated with each week the U.S. appeared close to a peace deal with Iran. Similarly, between February and June, crude prices also fell. WTI crude falling below $70/bbl marks a level not seen since before the Iran war.
Any trade deal among Mexico, the U.S., and Canada appears increasingly unlikely. The U.S. declined to extend the USMCA for 16 years, starting the countdown to its expiration. Ahead of the expected announcement, the Canadian dollar (FXC) traded at $68.76, near a 52-week low. Weak oil prices also hurt the Canadian currency.
In the technology sector, Oracle (ORCL) shares faded, with continued selling pressure erasing over $100/share in about a month. ORCL stock rallied to over $240 in June. But by June 22, sellers unloaded the stock daily. Oracle closed at $142.50.
Investors may want to consider holding faster-growing firms with lighter or no debt loads. MongoDB (MDB), Datadog (DDOG), and Elastic (ESTC) are worth considering.
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