- Gold prices ease from $1,842.36 as risk-on dwindles.
- Moderna, Pfizer flash alternate signals on supply, US President-elect Biden wants Dr. Fauci to approve the vaccine rollout.
- US-China tussle regains market attention, stimulus headlines suggest no clear direction.
- US NFP, risk catalysts will be the key for fresh impulse.
Gold recedes to $1,840, down 0.10% intraday, as markets in Tokyo open for Friday’s trading. The yellow metal rose to the nine-day high the previous day as the US dollar weakness, coupled with the market optimism, favored the bulls. However, the recently mixed catalysts confuse the commodity traders.
While Moderna sees the availability of around 100 to 150 million doses of its coronavirus (COVID-19) vaccine globally in 2021, Pfizer-BioNTech cites the material supply chain for the inability to deliver the promised 100 million doses of its much-awaited vaccine. On the other than, Joe Biden praises, indirectly, US Health official Dr. Anthony Fauci while saying, “I will get the covid-19 vaccine when Dr. Fauci says it is safe and will take it publicly.”
The US-China tension intensifies as the US confirms four companies blacklisted due to possible links with the Chinese military. Additionally, US Director of National Intelligence John Ratcliffe was recently quoted stating that China is preparing for "an open-ended period of confrontation with the US," urging bipartisan action to address "the greatest threat to America today" and to "democracy around the world since World War II."
Alternatively, the Wall Street Journal reports that the US Justice Department is in talks with Huawei's Meng Wanzhou to allow her to return to China if she agrees to some wrongdoing. A deal could pave the way for the release of two detained Canadians.
Chatters concerning the US covid stimulus suggest the House Republican leader Mitch McConnell recently praised conversation with Speaker Nancy Pelosi after turning down the bipartisan proposal of $908 billion. During the late-Thursday, US President Donald Trump showed readiness to sign the aid package if the Senate approves it.
Hence, there is no clear direction concerning either the virus or stimulus, not to for US-China relations. Though, the precious metal cheers US dollar weakness amid expectations that the cure to the pandemic is nearby.
Amid these plays, S&P 500 Futures rise 0.20% whereas stocks in Asia-Pacific trade mixed while tracking the Wall Street closing. It should, however, be noted that the US equities refreshed record highs before closing Thursday with mixed results.
Looking forward, November’s employment data for the US will be the key while updates concerning the much-awaited aid package and vaccine news can also offer notable direction.
Read: Nonfarm Payrolls Preview: Another dollar’s disappointment underway
Technical analysis
A sustained break of the three-week-old falling trend line needs to provide a daily closing beyond $1,850 to recall the bulls. Until then, gold bears can keep their eyes on May high near $1,765.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.