SMM Network News:
Precious metal
Westpac (Westpac) believes that the gold market may have peaked and could fall back below $1650 an ounce in the next two years. The bank expects the average price of gold to fall below $1760 an ounce by the end of next year, before falling to $1633 by the end of 2022.
Kyle Rodda, an analyst at IG Markets, said that if the transfer of power in the United States goes smoothly, it will also be more positive for its economic recovery, which means there is less market risk. "the fall in gold prices below the $1840 / oz support level indicates that it will fall further to the 1700 level before buyers will re-enter the market."
Chris Vermeulen, chief market strategist at Technical Traders, said that the momentum of the short-term gold market is on the downside. "there is a lot of upside in the gold market, but to reverse the current downtrend, support of $1800 to $1810 / oz will be critical. If the area is broken and the weekly close is below that level, it indicates that the gold market may have really peaked and the downside may even fall back to $1500 or $1600 an ounce. "
Han Tan, a market analyst at FXTM, said investors clearly believe that the arrival of the vaccine means a restart of the US economy, and they have planned to look forward and believe that the downside risks in the future are limited.
Foreign exchange market
Kyosuke Suzuki, head of foreign exchange at Soci é t é G é n é rale, said: "the strong US data are clearly good for the dollar." But the Suzuki added that in spite of the rise in the dollar, the downward trend was likely to continue as the US was burdened with large fiscal and trade deficits.
Vassili Serebriakov, foreign exchange strategist at UBS (UBS), said the dollar's weakness was due to the counter-cyclical nature of the dollar. The pound, by contrast, is likely to be a better performing currency. "the global cyclical recovery and the Brexit deal will boost sterling, which is a factor that has not yet been fully taken into account in the market."
ING said the dollar rebounded briefly yesterday after hitting a multi-month low, indicating a delay in response to the tough eurozone PMI. With global markets supporting risk appetite, it may be hard to find more momentum for the dollar's rebound. Today we expect to see the dollar index hover around the 92.50 level, and support at 92.00 may be further tested in the coming days.
Matthew Maley, chief market strategist at Miller Tabak, pointed out that whether the dollar will weaken still depends on the confirmation signal, if it effectively falls below the 92 level, then technically it is very bearish.
