Looking back at Tuesday's trading yesterday, gold prices rebounded from the 2-week low hit the previous day and closed at a 1-week high. This is because Washington is expected to reach another new coronavirus relief financial package before the end of the year, attracting market

yesterday reviewed

Tuesday's trading. The price of gold rebounded from the 2-week low hit the previous day and closed at the highest point in 1 week. This is because Washington is expected to reach another new coronavirus relief fiscal plan before the end of the year, attracting market attention. . Gold's move came ahead of the Fed's policy meeting announced on Wednesday. Gold prices rose $23.20, or nearly 1.3%, to close at $1,855.30 an ounce, reaching the highest closing price for the most actively traded contract since December 8. Investors are paying attention to the efforts of senators and representatives from both parties. The two parties launched a two-stage bailout package on Monday, splitting out the more controversial US$160 billion of the original total of US$908 billion in projects, namely state and local aid and liability protection. , leaving behind a widely supported $748 billion in measures, including extended unemployment benefits and help for businesses. Precious metal prices rose further after the United States released generally bleak economic data on Tuesday. According to the latest survey released by the New York Fed on Tuesday, the New York business activity index has slowed down in the past few months, and its Empire Index rose only slightly in December. In addition, the U.S. import price index rose 0.1% in November.

U.S. stocks are expected to reach an agreement on new stimulus talks after the bell on Tuesday, and the FDA is about to authorize the use of the Moderna vaccine. Wall Street is full of optimism. Crude oil and gold rose, the U.S. dollar weakened, U.S. bond yields climbed, and utilities drove the market rally. The four major indexes all rose more than 1%. Apple rose sharply. The Nasdaq hit a record high. The Dow Jones rose more than 300 points and returned to the market. It hit the 30,000-point mark, the strongest day since November 24. Speaker of the U.S. House of Representatives Pelosi invited major congressional leaders on Tuesday, including Senate Majority Leader McConnell , Senate Minority Leader Schumer and House Minority Leader McCarthy to a meeting. Agreement on stimulus and spending package. On Monday, senators and representatives from both parties announced a $908 billion compromise bill. One of the plans is worth $748 billion, including providing subsidies to the unemployed in small businesses. The other is a $160 billion split involving the two parties. Seriously divergent provisions include providing assistance to state and local governments and corporate exemptions. After the US Electoral College announced the vote results on Monday, although US President Trump was still unwilling to admit defeat, Republican Senate Majority Leader McConnell expressed his position on Tuesday, congratulating Biden on winning the presidential election and warning Republicans not to Denies Biden’s victory. The Dow Jones Industrial Average rose 338.95 points, or 1.14%, to close at 30,200.50 points. The S&P 500 index rose 46.51 points, or 1.28%, to close at 3,694.00 points. The Nasdaq rose 155.02 points, or 1.25%, to close at 12,595.06 points. The Philadelphia Semiconductor Index rose 38.54 points, or 1.41%, to close at 2,774.79 points.

Basic Analysis

Investors are looking forward to a new round of stimulus negotiations in the United States and are waiting to see the last decision-making meeting of the year by the Federal Reserve (Fed). The U.S. dollar index continued to fall on Tuesday (14th). The pound surged 1% against the US dollar, less than three weeks before the end of the Brexit transition period on December 31. The BBC editor revealed on Twitter that the UK-EU trade negotiations are moving towards an agreement that is satisfactory to the Brexiteers. The emergence of stimulus negotiations in the U.S. Congress and the beginning of vaccination in the United States have expanded the market's risk appetite, thus selling off safe-haven currencies. The DXY U.S. dollar index was at 90.458 in late New York trading. It fell to 90.419 on Monday, the lowest since April 2018. Leaders of the U.S. House and Senate met on Tuesday afternoon, hoping to finalize a large-scale appropriation bill and break the deadlock in a new round of stimulus negotiations. House Speaker Pelosi's office revealed that U.S. Treasury Secretary Mnuchin will participate via phone. Despite worrying infection numbers and death rates in Europe and the United States, vaccination efforts are underway. Moderna's COVID-19 vaccine is expected to receive U.S. Food and Drug Administration (FDA) approval for use this week. The U.S. dollar index reached 90.4600.

Oil Price Trends

Crude oil prices hit their highest closing price in more than nine months on Tuesday as investors welcomed the arrival of a COVID-19 vaccine and Washington's move toward passing another round of epidemic relief packages. Crude oil prices rose on Tuesday even as OPEC lowered its oil demand forecast for 2020 and 2021 on Monday. The International Energy Agency (IEA) warned on Tuesday that the economic recovery of some of the world's wealthier countries has regressed this quarter. Its monthly report lowered its demand recovery forecast for 2021 by 170,000 barrels per day, bringing it to 5.7 million barrels per day. WTI crude oil prices rose 63 cents, or nearly 1.3%, to settle at $47.62 a barrel, the highest point since February 26 for the front-month contract.Brent crude oil prices rose 47 cents, or 0.9%, to settle at $50.76 a barrel, the highest point since March 4 for the front-month contract. Investors are paying attention to the efforts of senators and representatives from both parties. The two parties launched a two-stage bailout package on Monday, splitting out the more controversial US$160 billion of the original total of US$908 billion in projects, namely state and local aid and liability protection. , leaving behind a widely supported $748 billion in measures, including extended unemployment benefits and help for businesses.

Source: FX168

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