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Market News 【Market Morning】Gold plummets while USD rises. Two crude oil futures close down

【Market Morning】Gold plummets while USD rises. Two crude oil futures close down

India’s fuel demand jumped by 13% in the first two weeks of June. OPEC Secretary-General urged member states to continue oil investment; the outlook for the dollar is strong; it’s another bloody day! Gold once slumped 58 U.S. dollars and broke 1770, palladium "crashed" nearly 11%; U.S. dollar plunged more than 70 points and broke 92; market risk aversion heated up again, the three major stock indexes were mixed, and the Dow fell more than 400 in intraday trading. point.

TOPONE Markets Analyst
2021-06-18
740

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Two major crude oil futures closed down

The US dollar index rose to a two-month high on Thursday (June 17), putting pressure on oil prices denominated in US dollars, and the two major crude oil futures both closed down. As of press time, US WTI crude oil July futures fell 1.11 US dollars, or 1.54%, to close at 71.04 US dollars per barrel. It once fell below the $70 mark and hit a one-week low of $69.77 per barrel; Brent's August futures closed down $1.31, or 1.76%, to $73.08 per barrel. It once stepped on the $72 mark during the intraday trading session.


All analysts and organizations, including OPEC and the International Energy Agency (IEA), believe that global oil demand is still rebounding strongly. Some commodity trading groups said this week that although oil prices may not enter a new super cycle, there is still room for oil prices to rise from current levels due to a strong rebound in demand and anticipated tight supply.


Gold price fell

The price of gold fell by more than 2%, leading to a sell-off of various precious metals, among which palladium hit its worst day in more than a year. The U.S. dollar strengthened after the Fed's strong wording on its currency strategy.


Spot gold closed at US$1,773.31 per ounce, a sharp drop of US$38.82 or 2.14%. It hit the lowest point of US$1,767.18 per ounce in the session since May 3, a sharp fall of US$58 from the daily high and a drop from the previous day’s high. Go to nearly 100 dollars.


COMEX August gold futures closed down nearly 4.7%, at least the largest one-day decline in the main contract since November 2020, at $1,774.80 per ounce, a record low since April 30.


Other precious metals also suffered crazy selling: spot silver closed at $25.89 per ounce, down 3.99% during the day; spot palladium fell 10.80% to $2,497.63 per ounce; spot platinum fell 5.1% to $1063.71 per ounce.


Dow fell more than 400 points intraday

Investors digested the Fed’s latest policy update. The number of initial jobless claims in the United States unexpectedly rebounded last week, risk aversion in the market rose, the favored prices of U.S. bonds rose, and yields fell accordingly. The three major U.S. stock indexes developed individually.


After the Dow opened slightly higher, it switched to the water. The mid-section fell more than 400 points, and finally closed down 209.76 points, or 0.62%, to 33,823.91 points; the S&P 500 index closed down 2.51 points, or 0.06%, to 4221.19 points, compared with The historical high was 0.9% lower; the Nasdaq closed up 121.67 points, or 0.87%, to 14161.35 points.


In terms of individual stocks, Nvidia (NVDA.O) closed up 4.76%, Water Drop (WDH.N) closed down 11.1%, CureVac (CVAC.O) closed down 39%, and U.S. Steel (X.N) closed down 7.79%.



Dollar rise

The U.S. dollar index closed up 0.57% to close at 91.90, hitting a high of 92.01 during the session, which was a sharp increase of more than 70 points from the daily low of 91.30. The rise in the dollar makes gold more expensive for investors holding other currencies.


Fed officials expected on Wednesday that the Fed will speed up the timetable for raising interest rates and begin negotiations on how to end emergency debt purchases, and said that the new crown pneumonia pandemic is no longer a core factor restricting US business activities.


Strategists at Deutsche Bank stated that they are ending the EUR/USD bullish trading proposal, which is based on the Fed’s dovish stance.


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