Gold 1889,25
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EURUSD 1,1685
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DJIA 27297
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OIL.WTI 39,44
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DAX 12688,84
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The beginning of the week brought some resonance to the constantly growing stock market and made investors think. It turns out that serious sales can start against the background of any negative information. In the current case, this is another wave of coronavirus, as well as growing tension between the US and China.
Gold
The U.S. Congress is still unable to approve financial assistance for its country. Due to fears of a second wave of COVID-19, there have been serious asset sales in most markets.
Markets are concerned that they can very quickly lose the profit they have accumulated since April this year. The CBOE market volatility index (VIX), the so-called investor worry index, has jumped to its highest level in a couple of weeks.
So what will happen next? Of course, the pressure of the bears is strong now, but investors should still pay attention to macroeconomic data, which improves with each report. The S&P500 index stopped falling on Tuesday and rose 0.2% to 3285, the DAX closed at 12594, which is 0.41% higher than the opening price.
US Dollar
The U.S. dollar quickly converted to the currency of the “safe haven”, along with the Japanese yen. In the current situation, statements by the US Federal Reserve and uncertainty in government have played a role. Investors are worried about the negative news background and are trying to exit all risk assets. The US dollar is growing for the third consecutive trading session. On Tuesday, the US dollar index came close to 94 and is about to leave even higher.
Gold
Perhaps many people have wondered why the gold market has been falling simultaneously with the stock market since the beginning of the week. Such actions usually take place because investors do not have a certain plan for the near future. The U.S. election campaign is already starting, and Trump’s sharp statements towards China are jeopardizing the development of market relations. As a result, investors have seen the opportunity to buy the dollar. Still, gold is a metal in demand and it is only a matter of time before growth resumes. On Tuesday gold is traded at a strong level of $1900 an ounce.
What awaits us today?
04.00 Statement from the Reserve Bank of New Zealand
09.30 Business activity index for the German manufacturing sector for September
16.00 Address by Mr. Powell, Head of the US Federal Reserve.
16.30 US crude oil reserves
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