Macro Roundup (Dec 29)

Published: Dec 29, 2020 08:44 (GMT+8)
The dollar largely shrugged off President Donald Trump’s decision to relent on a threat to block a Covid-19 aid bill in thin trading on Monday with many investors on holiday.

SHANGHAI, Dec 29 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The dollar largely shrugged off President Donald Trump’s decision to relent on a threat to block a Covid-19 aid bill in thin trading on Monday with many investors on holiday.

The pound hovered below a 2-1/2-year high in the Asian session following the agreement last week of a narrow Brexit trade deal that does not cover Britain’s financial sector.

Trump signed into law the $2.3 trillion pandemic aid and spending package, averting a partial federal government shutdown that would have started Tuesday.

Earlier he had cryptically tweeted, “Good news on Covid Relief Bill. Information to follow!” He had previously demanded an increase in stimulus checks for struggling Americans to $2,000 from $600.

While last week’s Brexit deal came as a relief to investors, the bare-bones nature of the pact leaves Britain far more detached from the EU, analysts say, suggesting the discount that has dogged UK assets since 2016 will not vanish soon.

Brussels has made no decision yet on whether to grant Britain access to the bloc’s financial market.

Overnight on Wall Street, the Dow Jones Industrial Average gained 0.7% to close at 30,403.97. The S&P 500 rose 0.9% to finish its trading day at 3,735.36 while the Nasdaq Composite closed 0.7% higher at 12,899.42.

The gains stateside came after U.S. President Donald Trump signed a $900 billion coronavirus relief package into law, with the measure including a direct payment of $600 to most Americans. Trump had previously demanded a $2,000 direct payment days before the signing. The House voted Monday to increase the second round of federal direct payments to $2,000, leaving it up to the GOP-controlled Senate.

The number of coronavirus cases keeps rising in the U.S., however, casting doubt over the economic recovery heading into the new year. Over the past week, at least 184,000 new infections have been reported in the U.S. per day, according to an analysis of Johns Hopkins University data.

“Vaccine distribution has now officially begun … yet the pandemic has reached concerning levels on multiple fronts,” wrote Jason Pride, CIO of private wealth at Glenmede.

“The viral resurgence has induced lockdown measures throughout the country, stunting economic reopening efforts. If the viral spread is not brought under control by year-end, it will likely be a key initiative to do so in early 2021 before a vaccine has become widely distributed,” Pride added.

Oil declined on Monday, after earlier rising to $52 a barrel, as optimism over the U.S. stimulus package and the start of a European vaccination campaign was counteracted by weak demand and the prospect of higher OPEC+ output.

Gold prices rose as much as 1.3% on Monday, as the U.S. dollar slipped after the U.S. President Donald Trump signed a long-awaited pandemic aid bill, while liquidity remained low on account of the holiday season.

Spot gold gained 0.03% to $1,876.51 per ounce, after earlier hitting its highest since Dec. 21 at $1,900.04. U.S. gold futures were down 0.2% to $1,880.40.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Tanzania’s Imwelo selects processing route after gold recovery rises to 84.5%
15 hours ago
Tanzania’s Imwelo selects processing route after gold recovery rises to 84.5%
Read More
Tanzania’s Imwelo selects processing route after gold recovery rises to 84.5%
Tanzania’s Imwelo selects processing route after gold recovery rises to 84.5%
[SMM Gold Flash] Lake Victoria Gold reported new metallurgical testwork for weathered ore at Area C of its fully permitted Imwelo Gold Project in Tanzania. Attrition scrubbing followed by desliming increased 24-hour gold extraction from 49.99% to 84.54% in agitated-leach testing. Bottle-roll recovery reached 88.15% after pretreatment, while gravity-recoverable gold also increased. The work was conducted by Nesch Mintech Tanzania in Mwanza. The company has identified attrition scrubbing and desliming as the preferred pretreatment route for further optimisation of the clay-rich near-surface material. Lake Victoria Gold says the results complement earlier work on deeper material, where recoveries of approximately 96–97% were reported. Importantly, the reported recoveries relate to tested pretreated fractions and do not yet represent overall whole-ore plant recovery; further mass-balance and optimisation work is planned.
15 hours ago
Aurum drilling delivers 155 g/t gold hit at Côte d’Ivoire’s Boundiali
15 hours ago
Aurum drilling delivers 155 g/t gold hit at Côte d’Ivoire’s Boundiali
Read More
Aurum drilling delivers 155 g/t gold hit at Côte d’Ivoire’s Boundiali
Aurum drilling delivers 155 g/t gold hit at Côte d’Ivoire’s Boundiali
[SMM Gold Flash] Aurum Resources reported new assay results from 22 diamond holes totalling 6,172.8 metres at the BST1 deposit at its Boundiali Gold Project in Côte d’Ivoire. The results include 2.63 metres at 76.74 g/t gold from 195.2 metres, including 1.3 metres at 155 g/t, together with 24 metres at 6.31 g/t from 108 metres, including 7 metres at 19.25 g/t. Several intersections extend beyond the existing BST1 resource envelope. The results will feed into Aurum’s planned Boundiali Mineral Resource update targeted for early Q4 2026. The company says mineralisation remains open along strike and at depth, while drilling continues across the project. The results are therefore an exploration and resource-growth development rather than additional production. Boundiali currently has a 3.22-million-ounce JORC Mineral Resource, while Aurum is advancing a definitive feasibility study.
15 hours ago
Platinum Shows Stronger Inflation and Real-Rate Linkages Than Gold, Study Finds
16 hours ago
Platinum Shows Stronger Inflation and Real-Rate Linkages Than Gold, Study Finds
Read More
Platinum Shows Stronger Inflation and Real-Rate Linkages Than Gold, Study Finds
Platinum Shows Stronger Inflation and Real-Rate Linkages Than Gold, Study Finds
[SMM Gold & PGM Flash] A new study published in the Journal of Commodity Markets finds that platinum has exhibited broader and more persistent co-movement with inflation and real interest rates than gold. Researchers Arusha Cooray and İbrahim Özmen examined monthly data from July 1999 through December 2024 across the US, Germany, Italy, France, Switzerland and the Netherlands, using turning-point analysis, wavelet coherence and time-varying Granger-causality methods. The study found gold’s macroeconomic relationships were comparatively weaker and more fragmented, while platinum and silver showed broader synchronization, particularly in the US and Germany.​ The researchers attribute platinum’s stronger macroeconomic sensitivity in part to its substantial industrial exposure, meaning its price reflects not only monetary conditions but also manufacturing activity, investment and supply constraints. The findings do not establish platinum as a universally superior inflation hedge: the relationships varied across countries, periods and monetary-policy regimes. Instead, the study highlights a fundamental difference between the metals, with gold’s broader monetary and defensive role producing a different response to inflation and real-rate conditions.
16 hours ago