Volatile trading for gold… Negative for oil… USD is regaining its strength

Oil News Oil Trading Stock Market News

Volatile trading for gold… Negative for oil… USD is regaining its strength

Volatile trading: The American Congress will decide whether to impeach Donald Trump or not,
due to his actions which led to the storming of the Capitol by his supporters.

So Said Nancy Pelosi, US House Speaker.


At the same time, it seems that the president, whose term will formally expire in a week,
is planning to spend this week as controversial as usual!


Markets evaluate the echo of this news on trading.

Evest continues to see how markets are affected by all these news and events.


Oil is receding duty to the increase of infections in China in addition to the strength of the US dollar


Oil prices fell today amid a great strength of the US dollar besides the tightening of health measures around the world.


Brent crude futures for March recorded $55.44 a barrel,
down $0.55 at the rate of 0.98% from its price at the close of the previous session.

Brent rose during Friday’s session by 3%, to reach $ 55.99 a barrel.


February WTI crude futures were at $ 51.9 a barrel which is $ 0.34 at a rate of 0.65% below the previous trading level. On Friday,
US West Texas Intermediate crude oil prices rose by 2.8% to reach $ 52.24 a barrel.


Oil prices fell on Monday after renewed concerns about global demand for fuel amid strict closures of Coronavirus in Europe and new restrictions on movement in China, the second-largest consumer in the world after the increasing number of cases there.


According to Reuters, Today, the National Health Authority of the country said that mainland China has witnessed the largest daily increase in cases of Covid-19 in more than five months besides, a continuing rising of new infections in Hubei Province, which surrounds the capital, Beijing.


On the other hand, according to Standard & Poor’s Global Platts, head of Vanda Insights Vandana Hari, said:
“Dollar continued to rise for the third day in a row on Friday, and it has been rising since this morning which led to a decline in commodity prices”.


Despite, the drop in oil prices, analysts expect that the bullish wave of Coronavirus infections will recently resume again,
as they expect new stimulus measures from the administration of President-elect Joe Biden.


Meanwhile, the epidemiological situation in Europe and the United States as well as recent
outbreaks of Coronavirus in Asia appears to be a major concern in markets.


Last week, traders in this market did not see any negative news,
regarding the development of the epidemic, as they looked forward to anticipating a
significant improvement in demand thanks to vaccines.


At the end of last week, oil prices rose by about 8%.

Traders’ optimism was supported by news of an additional voluntary production reduced by Saudi Arabia in February and March.


Gold is rising after falling to its lowest level since December 2nd

In the precious metals market, gold fell to continue its biggest decline through two months,
due to the gains of the US dollar, treasury returns, and the stock market, but then it managed to recover as it is now trading higher.


The yellow metal fell by 1.7% to record $1817.49 an ounce.

Gold was down 3.4% on Friday.


Last week was not good for gold, as prices endured a week of rebound with the beginning of January,
as despite early gains at the start of the week,
the rise in US Treasury yields for ten years by more than 1%, weakened the attractiveness of gold, which has not any benefit.


The dollar recovered from its lowest level in less than three years,
putting increasing pressure on the dollar-denominated commodity.


Nevertheless, these negative moves may be corrective as there is good news regarding the stimulus package that will support yellow metal.


On Friday, Biden called for trillions of dollars in additional immediate aid including increased direct payments to citizens after an increase of Coronavirus cases led to a drop in US salaries for the first time since April.


It is supposed to present his proposals next Thursday, before taking office on January 20.


Gold is trading randomly, as it seems that investors are going through major flops.

Bond yields have increased and at the same time expectations of higher inflation are increasing,
which by its turn makes gold rise and fall with unstable moves in a single trading session.

It also led to pushing gold higher after falling at the start of the session.


Mixed trades in European stock exchange

Experts expect the European market to open mixed today, so as to follow the footsteps of its Asian counterpart overnight.


According to IG forecasts, the British FTSE Index is expected to rise to 6877, adding 13 points,
while the German DAX will decline by 2 points to reach 14018.

French CAC index may decline also by 2 points as DAX, to 5688 points.

Italian FTSE MIP may decline by 92 points to reach 22549.


Asian indicators are mixed

Today, Asian stocks witnessed a flow-up session, as Nikkei rose well by 2.3% to reach 28.139.03 points.

Hang Seng rose by 0.06% to 27.893.74 points.

Shenzhen Index declined by 1.33% to reach 15.115.38 points.

Australian S & P/ ASX 200 index fell also by 0.9% to 6697.20 points and Kospi index fell by 0.12% to 3148.45 points.


The collective rise in US indices

Major US indices ended trading in the green zone. Standard & Poor’s 500 index closed up 0.5% to 3.824.68 points, after adding 20.89 points.


Dow Jones rose 0.18% to reach 31097.9 after adding 56.87 points from the previous close. Nasdaq was able to jump by 1.03%, to 13201.98 points, after adding 134.48 points.


The dollar is rising against all currencies

Today, Evest follows up currency movements as the US dollar appreciates against a basket of major currencies.

Euro fell against green currency by 0.26%, to reach 1.2187 points.

Sterling fell by 0.46% to 1.3500, while the Australian dollar fell by 0.75% to reach 0.7708 points.

New Zealand dollar also fell by 0.57% to 0.7195 points.


US dollar rose against the Japanese yen by 0.17% to 104.124 points and rose against the Chinese Yuan at a rate of 0.03% to reach 4.4.769.