On Tuesday (December 21), the U.S. dollar fell slightly. Commodity currencies had the highest gains against the U.S. dollar. Market confidence has improved. The market is optimistic that vaccines can help curb the spread of the omicron strain. In addition, there are signs that U.S. President Biden may revive him. The trillion-dollar economic agenda. Spot gold rose and fell, closing below the 1790 mark in late trading. The market demand for risky assets rose, making safe-haven gold lose its appeal. Affected by the recovery of risk appetite, crude oil futures rebounded sharply, and U.S. oil rose nearly 4%, regaining some of the ground lost in recent trading days. However, investors remain cautious because the epidemic has reduced holiday travel plans, giving the prospect of near-term fuel demand Become more pessimistic.
Spot gold rose and fell on Tuesday, closing below the 1790 mark in late trading. As the US dollar regained part of its lost ground, investors' interest in risky assets resumed and no longer considered the economic risks brought by the Omicron coronavirus variant. Phillip Streible, chief market strategist at Blue Line Futures in Chicago, said that today is a risk-driven transaction. The U.S. stock market rebounded after falling yesterday, and the U.S. dollar also rebounded following U.S. bond yields, all of which put some pressure on gold prices; but Streible added Said that due to concerns about the economic shock brought by the new crown epidemic and other uncertainties, people took advantage of all the opportunities of falling to buy on dips, and the $1,800 level is still a key support level for gold.
The U.S. dollar regained some of its lost ground overnight, and risk sentiment picked up after the global market fell. OANDA senior market analyst Jeffrey Halley pointed out that gold investors still lack the willingness to bear any form of loss, as evidenced by the rapid fall in the price of gold after rising above US$1,800 recently. He added that the price of gold lacks the momentum to break through the current range.
Despite the increase in the number of new crown cases, global stock markets have risen because the risk appetite of global investors has risen towards the end of the year. Analysts said that the broader market near the end of the year trading may remain light, especially gold, 2021 may end in a range of shocks.
Risk Warning: The above content is for reference only, and does not represent JRFX’s position. JRFX does not assume any form of loss caused by any trading carried out in accordance with this article. Please consult your financial planner for your investment portfolios and manage your own risk.
JRFX is an online CFD broker providing more than 50 products for Forex, metals and commodities. Open a trading account within a minute. Deposit 100USD and download our MT4 trading platform now!
MetaTrader 4 is a Forex and CFD trading platform used for trading and analysing the financial markets. MetaTrader 4 offers traders access to advanced trading operations in a fast, secure and reliable environment.DOWNLOAD
Access the globe's financial markets from your fingertips: explore our new JRFXOne mobile app and choose from over 1,500 CFD markets including FX, indices, commodities and stocks from around the world.DOWNLOAD