2020-10-07 • Updated
The yellow metal tries to reverse from yesterday’s huge losses, caused by Trump’s tweets. The US president canceled talks between Democrats and Republicans over the fiscal stimulus package, whereas the deal was one step away from reaching. That was really shocking, and as a result, the safe-haven US dollar skyrocketed, which in turn pushed gold to the downside.
After that, Trump was hugely criticized for this by many US politicians, worsening his already weak position. According to US polls, Joe Biden has a lead of 8 percentage points over Donald Trump: 51% vs 43%. That’s why the current president reiterated that Congress will fund small businesses and airlines, and also unveil $1 200 stimulus checks to Americans. Actually, it worked, and the market sentiment has improved, weighing on the greenback, which boosted gold.
Saxo Bank has a positive outlook for gold because of the upcoming presidential elections on November 3. In the case of Biden’s victory, investors will await a policy shift, which will create uncertainty on the market, and as a result, capital may flow to gold.
Citibank announced the bullish short- and medium-term forecasts for gold. The bank set the 3-month price target at $2 200 and the 6-to-12-month target at $2 400.
According to Heraeus Precious Metals: “however, the pandemic is far from over, and if the economic outlook worsens, central banks could increase their monetary interventions yet again”.
Forecasts may seem one-sided for you, but there is hardly any bearish forecast for gold in the medium term. Although gold is trading sideways currently, its long-term trend is bullish. As you may know, gold tends to stick to the long-term trend.
After yesterday’s huge slump, gold has turned to the upside. The move above the key resistance of $1 900 will drive the yellow metal to Monday’s high of $1 920. On the flip side, if it drops below yesterday’s low of $1 875, the way towards September’s dips at $1 850 will be open.
Follow Fed’s meeting minutes this evening as they will add fresh volatility to XAU/USD.
China has issued new oil product export quotas to allow oil companies to send surplus barrels overseas, particularly Sinopec, which has the highest volume among quota holders. While the exact quota volume remains undisclosed, oil companies are forecasted to export approximately 3.5 million metric tons of clean oil products in September, a 10% increase from August.
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
As the US Non-Farm Payrolls (NFP) take center stage, this month's data gains special attention, particularly after the unemployment rate took a concerning turn in the previous month. The US ADP Employment Change reveals a significant decline, with the economy adding 298K new jobs...
As the year winds down and the festive spirit takes hold, the stock market often presents a curious yet anticipated phenomenon known as the Santa Rally. Within this whirlwind of festive trading, let’s look at how two titans of the tech world, Amazon and Apple, might fare during this unique season.
Gold price (XAU/USD) experienced a notable turnaround, gaining fresh bids after a $125 pullback from its recent peak. Federal Reserve Chair Jerome Powell's recent speech suggested a reluctance towards aggressive rate cuts, dampening speculations of immediate policy easing. Market sentiment leans towards the belief that the Fed has concluded its tightening cycle, with a growing...
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