Gold price was the other focus on Monday as it tumbled over 5%, as much as $100 per ounce, after the positive development result. The sell-off pressure was mainly related to the risk appetite in the whole financial market, that significantly lower the safe haven demand for Gold. Furthermore, the news lowered the dovish expectation from Fed, even the other central banks, a more aggressive approach in the monetary policies, boosting the greenback. The dollar index bounced back from around 92 level, steadied at around 92.7 on Tuesday.
ZFX analyst Jacob Leung said that, the weak dollar showed risk-on condition in this moment, but be aware that it may be a very volatile week, especially the NFP is coming ahead, and the arguments regarding the US election have arisen.
نرى على الشارت اليومي للذهب صعود طفيف مع بداية الاسبوع وايضا بداية الشهر لاختراق سعر 1895 والان يتداول عند سعر 1887 ويحاول الوصول الى
ZFX analyst Jacob Leung said that, the market may be reacting on Trump’s win. The first thing we can expect is that the China-US tensions may be rapidly escalated next year, no matter in economic, political, military and technological aspects.
Over these days, there were no new market watch in the financial market. Generally, markets were running in a ranging pattern, with no bullish or bearish driver dominated. Of course, the US election is the most eye-catching. The coming Presidential debate is the key focus this week on 22th Oct. ZFX analyst Jacob Leung said that, it would be a “super” battle as it is the last debate. The recent polls showed that Biden’s support was weakened by the “email scandal＂of his son, Hunter Biden. Investors are paying close attention to the issues and how the coming polls is going.
Such bad news took a hard hit to Wall Street on Tuesday. The Dow closed down 1.34%, the S&P 500 lost 1.4% and the Nasdaq dropped the most, 1.57%. In the earlier US trading session, all three indexes were higher as investors were optimistic over the stimulus package, especially under the severe coronavirus outbreak situation.
While risk appetite sounds back, the dollar slipped a bit. Gold price returned to the $1880 mark area as investors seek for another haven before the “first debate”. Democrat Joe Biden and Republican Donald Trump will square off later in the day (Wednesday 0900 GMT+8). It should be alerted that any wording from Trump and Biden may spark shocks.
The economic data from the US housing were outstanding over the recent weeks, even under the doubtful recovery situation. On Thursday, it may be the main reason for “bottom fishing”, pushing up the three major indexes. ZFX analyst Jacob Leung said that, of course it may be showing the buying interest, but technically speaking, the trends were still bearish. The retracement of the dollar was limited, made a “Doji” alike, meaning that the sentiment was just still cautious. The market is also closely watching the negotiations of the US Congress. It is reported that Democrats in the House of Representatives are preparing a draft of a relief bill of up to $2.4 trillion, which to some extent propped up the sentiment.
These day, coronavirus pandemic developments are the hot topics, weighing on investor sentiment. The dollar is strengthening against most of the major currencies amid risk aversion. Investors are worried the return of the lockdown measures, which will slow down the economic recovery. The worries have sparked another wave of the adjustment in the financial markets, especially under such unclear direction.
Risk aversion is now the main theme in the markets. Market sentiment is bearish due to the fears of another coronavirus outbreak. Not only European countries, but also the US, may impose lockdown measures again if the daily confirmed cases further soar in the coming days. Investors once again are worried about the economic recovery. Globally speaking, restrictions means a relatively pessimistic figure of the GDP ahead. Safe-haven demand drove the dollar up sharply on Monday, reflecting “Cash is King”. Gold, usually deemed as another shelter, again did not find any support during such panic movement, with gold price dropping more than 3% to $1882 level on Monday US trading session.