SMM: progress has been made in Brexit, which has been watched by the market on Tuesday.
British Cabinet Secretary Gove said he was pleased to announce that an agreement in principle had been reached on all issues of the UK-EU Joint Commission on Brexit agreements. The European Union and the United Kingdom have reached agreement in principle on all issues, particularly on the Protocol between Ireland and Northern Ireland.
Precious metal
Standard Chartered Bank (Standard Chartered) said that although gold still has obstacles in the short term, it is likely to return to the $2000 / oz level in the first quarter of next year. The whole macro face of gold is still positive factors, including a weak dollar and loose monetary policy and so on.
Margaret Yang, a strategist at DailyFX, said that if the US stimulus package is smaller than the market expected, it may not boost gold prices much. "if gold fails to effectively break through the $1870 / oz resistance level, it could fall back to the 1800 support level again."
Darin Newsom, chairman of Darin Newsom Analysis, said gold prices rebounded strongly after testing the support level of around $1765 an ounce. Technically, it is obviously bullish in the short term.
Michael Moor, founder of Moor-Analytics, said gold is expected to return to $1890 an ounce in this rally.
Sean Lusk, head of commercial hedging at Walsh Trading, points out that central banks around the world are doing the same thing, that is, printing money on a large scale, which will not end any time soon. Gold is expected to rise back to $1900 an ounce, which will be a key level of resistance in the short term. "only by regaining the $1904 level can gold be expected to return to its all-time high above $2000."
Foreign exchange market
Geoffrey Yu, senior market strategist for Europe, Middle East and Africa at (BNY Mellon) of Bank of New York Mellon, said Brexit trade talks had entered a critical juncture after months of failed negotiations, with British stocks and sterling having a chance to strike a deal or not.
Naeem Aslam, chief market analyst at AvaTrade, said: "British Prime Minister Johnson is making a last-ditch effort to find this agreement, but it seems to have disappeared into the sand." Traders know that this will be the last step in pushing for a Brexit deal, and the pound is becoming increasingly unstable against this backdrop. With and without agreements continuing, the pound is likely to rise sharply. For many investors, the basic situation is still that Britain will leave the European Union at the last hour, the last minute and the last second. "
Chris Weston, head of research at Pepperstone, said sterling could return $1.30 if no agreement was reached before Thursday's EU summit, but it was speculated that concessions might be made together to reach a deal. "I am confident that substantial progress has been made in this meeting, which could lead to some short covering without an agreement bet."
Maya Bhandari, multi-asset portfolio manager at Columbia Threadneedle Investments, said: "there is no doubt that UK assets have deep value and if we reach a good deal, it may rebound initially. We may see a short-term rebound, but I don't think it will last long. "
