Gold 1939,975
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EURUSD 1,182
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DJIA 28187
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OIL.WTI 37,79
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DAX 12526,59
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At the trading on Thursday, investors finally showed activity. It turned out that the unrest in the USA, which everyone was so afraid of, had not yet taken place. It is likely that Biden will win. This means that you can buy any asset and, above all, any risky one. Against this background, the US dollar has fallen sharply against all major currencies.
Gold
The positive developments in the markets indicate that no more delays are expected in the adoption of the new USD 2 trillion stimulus programme in the USA. Of course, the money will not go into real production. Who will be involved in its expansion when we face a total world lockdown? On the other hand, a lot of money will go to the stock and commodity market.
According to a comment on the Fed’s interest rate decision, we see a strong concern about the COVID-19 pandemic. This is an additional factor that suggests that the interest rates will not be increased for a very long time. As long as the labour market does not fully recover.
Gold
As always, gold will be one of the main beneficiaries. On Thursday, yellow metal grew by almost $50. If the price of $2,000 per troy ounce is taken over the next few days, we expect new historic highs by the end of the year.
Oil
But the positive side of the oil market is completely unclear. Yesterday we talked about the risks to black gold associated with Biden’s victory. However, that is not all. The fact is that the new American administration may again start negotiations with Iran on a nuclear programme, which is a priori impossible under Trump. If the embargo is lifted, about 2 million more barrels of oil per day will enter the market. This is another reason why the long-term run of oil should be kept extremely careful.
What awaits us today?
01.30 Comment from the Reserve Bank of Australia on Monetary Policy
08.00 Industrial production in Germany for September
14.30 Number of new jobs in non-US agricultural sector for October
14.30 Unemployment rate in Canada for October
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