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Market News 【Top1 Evening】 Gold price hesitates.The giant ship is difficult to save oil prices. Is the bad news in Europe the good news for the US dollar?

【Top1 Evening】 Gold price hesitates.The giant ship is difficult to save oil prices. Is the bad news in Europe the good news for the US dollar?

Gold prices hesitate; more than 10 million barrels of crude oil are trapped in the Suez Canal, but the demand cloud may restrain the room for rising oil prices; the dollar rises, Yellen and Powell expressed confidence in the US economy.

TOPONE Markets Analyst
2021-03-25
572

晚间新闻.jpg


Gold: gold price remains flat

Gold futures prices continued to hover above US$1,730. Although U.S. bond yields fell, the strong US dollar suppressed gold prices.


Spot gold prices fell 1.27 US dollars, or about 0.77%, to 1,733.43 US dollars per ounce. Gold futures prices fell 0.8 US dollars, or about 0.05%, to 1,732.40 US dollars per ounce.


"Gold prices at these levels may currently attract some safe-haven buying, which is different from what we saw a few days ago." said Michael McCarthy, chief market strategist at CMC Markets.


"The big problem with gold seems to lie in the views of two camps. One group of people is worried about the new European embargo... the other group is very optimistic about the economic outlook," McCarthy said. He also called these two. Contrary views are moderately supporting gold prices.


The price of gold is also regarded as a tool to hedge against inflation, and the stimulus policies implemented by various regions to boost economic growth may detonate inflation.


Crude oil:  oil prices rise 

US WTI crude oil futures prices fell 1.08 US dollars, or 1.77%, to 60.10 US dollars per barrel. Brent crude oil futures prices fell 89 cents, or 1.38%, to $63.52 per barrel. Natural gas prices fell 0.24% to US$2.513.


At midday in the Asian market, as the market focus returned to Europe's new round of blockades on demand, oil prices fell after a surge of about 6% overnight. On the previous trading day, a container ship ran aground in Suez, which hindered the transportation of crude oil on the channel and triggered a surge in oil prices.


Data released by the U.S. Energy Information Administration (EIA) on Wednesday showed that gasoline demand improved and refinery operating rates increased, which also boosted the market.


According to the U.S. Energy Information Administration, as of the week ended March 19, the utilization rate of U.S. refinery equipment increased by 5.5%, which was better than market expectations of 3.2%. At the same time, gasoline inventories only increased by 203,000 barrels, an increase much lower than market expectations of 1.186 million barrels.


Forex: USD rises again

The dollar index rose to 92.5100. The 10-year US Treasury yield fell slightly to 1.612%, but it remained near the recent high after the five-year bond auction.


The euro fell 0.24% against the dollar on Wednesday to $1.1821. In afternoon trading in the New York market, the safe-haven yen rose 0.14% against the dollar.


The Australian dollar, regarded as an indicator of risk liquidity, weakened further on Wednesday. The Australian dollar fell to US$0.7582 against the US dollar, the lowest level since February 5th, and then rebounded.


"The U.S. dollar will appreciate further, and our vaccination is advancing," Action Economics Global Currency Analysis Department


Ronald Simpson, managing director of the door, said, "Europe has encountered obstacles in vaccines."

In terms of cryptocurrencies, Bitcoin rose nearly 2% to $55,377, which is below the record high of $61,781.83.


Stock market: Nikkei index closed up 1.14%

The Japanese stock market closed higher on Thursday. Investors bought cyclical stocks that had recently fallen. However, technology stocks followed the decline of the Nasdaq index in the US stocks, restraining the broader market's gains.


The Nikkei Index .N225 closed up 1.14% to 28,729.88 points, ending its four-day losing streak.


Focus

20:30 Final GDP quarterly rate (Q4)

22:30 EIA natural gas inventory changes


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