Gold price was the focus last Friday, dropping over 3% due to the rebound of dollar and the uptrend of the US bond yields.
Spot gold is now trading around $1830 after slipping to $1816, back to the low in the mid of Dec, in the morning session on Monday. Gold has dropped over $100 per ounce since touching near $1960 last Wednesday.
ZFX analyst Jacob Leung said that, the US bond yields is going upward due to the speculation of massive stimulus from Biden’s administration, causing such correction in the markets. As mentioned before, traders now are considering that bitcoin is a better asset to hedge against inflation, in turn putting pressure on the gold price.
However, the new safe-haven, bitcoin has retraced over 10%. Bitcoin has doubled its price since the mid of Dec. ZFX analyst Jacob Leung said that, it would be quite normal to see this happening, no matter it is a technical adjustment, or traders expect a better chance in the stock markets.
Stocks in Asia-Pacific markets were generally good, following the momentum last week despite currently the slight correction of the US futures. The dollar index is trading at 90.4 level, rallying from the low of 89.21. European stocks are expected to be a mixed opening on Monday, based on a bit cautious sentiment.
This week, the FX, stock, gold and oil markets may still be volatile as traders may struggle between those market variables like the US political situation, the potential stimulus, the economic recovery and the pandemic.
ZFX analyst Jacob Leung said that the uptrend of the oil prices should be relatively stable as the trillion dollars relief bill in the US and Saudi Arabia’s unexpected supportive policy will help the oil market “back to normal” in the coming months.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.