Stocks, oil, and risk currencies gained on Tuesday as the formal go-ahead for US President-elect Joe Biden to begin his transition burnished a November already boosted by Covid-19 vaccines.
GOLD: up to $1,600?
Information is not investment advice
Performance in 2020: +4.6%
Last day range: $1,578 - $1,584
52-week range: $1,265 - $1,612
Will gold rise back to $1,600?
Gold trades at $1,585 per ounce – that’s almost as high as it was at the beginning of February, when the unfolding story of the Coronavirus was at the peak level of tension. Today, even with the number of new infection cases in the Hubei province decreasing compared to that of Monday, observers comment that the virus is far from being contained. China is on the way to compensate for the damaging effect of the outbreak. That supports AUD and NZD, slows down the flee-to-safe-haven momentum and improves an overall emotional state of the market. Strategically, however, that does not stop gold to keep rising. It will be of little surprise now if it finally gets back up to $1600. If the state of affairs continues the same as it is now for another week, this question most probably will be not “if” but “when”.
EUR/USD fell below 1.1850 after reaching 1.1920 on Monday. The pair consolidated after the initial bearish move.
USD/CAD remains within a downtrend. As a result, selling the pair as it turns down from resistance is the best strategy. Support lies at 1.3125.
Asian equity markets were mostly positive as the region partially sustained the momentum from the tech-led gains on Wall Street.
U.S. stocks are set to reopen higher after the Martin Luther King Day holiday on Monday, with Yellen’s remarks a welcome reminder of the momentum behind economic stimulus measures.
Joe Biden will take the post of president of the USA on the morning of 20 January 2021. Trump is going to skip the inauguration. What will be the market reaction? Let’s find out!