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Market News 【Market Evening】Gold price is only one step away from $1900! Euro and European stocks are fierce!

【Market Evening】Gold price is only one step away from $1900! Euro and European stocks are fierce!

The epidemic is under control and the economy is restarted. American investors have begun to favor European stock markets. Affected by the Gulf of Mexico weather, international oil prices have rebounded sharply by more than 2%. The price of gold is concerned about the US PMI data. If it breaks the upper track of the symmetrical triangle, it is expected to rise to 1900! The U.S. dollar was suppressed by the Euro, and the market outlook focused on two major economic data in the United States.

TOPONE Markets Analyst
2021-05-24
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Gold: Gold prices rose slightly


Gold became the biggest beneficiary last week. After hitting the highest value of US$1890 since early January on Wednesday, it fell slightly, but it still closed above US$1880, rising for the third consecutive week.


Spot gold closed at US$1881.31 per ounce on Friday, an increase of US$4.56 or 0.24%, and the highest intraday hit US$1,889.34 per ounce. Driven by lower US Treasury yields, spot gold rose by US$38.00 or 2.06% this week.


Edward Moya, senior market analyst at OANDA, said that although the Fed's reduction of bond purchases is a potential risk for gold, the Fed may still be one of the last few central banks to tighten bond purchases. This is an excellent environment for gold.


Forex: US dollar goes down


In the early trading of the European market on Monday, the US dollar index futures fluctuated slightly, not far from the three-month low. The market's expectations that the Fed will reduce the scale of bond purchases in the near future weakened.


Last week, the minutes of the Federal Reserve’s April monetary policy meeting boosted the U.S. dollar. The minutes stated that some policy makers were worried that a large number of stimulus measures might intensify inflation when the economy had improved, and hoped to discuss reducing the scale of debt purchases.


The dollar index futures fell 0.06% to 89.950, and fell to 89.646 last Friday, a three-month low.


The euro/dollar rose 0.18% to 1.2201 and hit a three-month high of 1.2245 last Wednesday; the dollar/yen was flat at 108.95. GBP/USD fell 0.04% to 1.4142. AUD/USD, which is highly sensitive to risk appetite, fell 0.17% to 0.7718.


Crude oil: oil prices rebounded more than 2%


U.S. WTI crude oil July futures closed up 1.72 US dollars, or 2.77%, to 63.80 US dollars/barrel, the highest hit 64.04 US dollars/barrel, the lowest fell to 61.55 US dollars/barrel; Brent crude oil July futures closed up 1.67 US dollars, or 2.57 %, reported 66.65 US dollars/barrel, the highest intraday hit 66.91 US dollars/barrel, the lowest fell to 64.54 US dollars/barrel.


International oil prices rebounded sharply from a one-month low last Friday, ending three consecutive days of decline. However, progress has been made in restoring the Iran nuclear agreement, as well as the severe coronavirus epidemic in major Asian regions and the four consecutive weeks of increase in the number of active crude oil rigs in the United States, limiting the room for oil price rebound.


Stock market: European stock markets are improving


Hong Kong's Hang Seng Technology Index fell more than 1.8%. The Hang Seng Index fell 0.19% to 28,404.78 points.


The major European stock markets opened mixed. The European Stoxx 50 index rose 0.62%, the UK FTSE 100 index rose 0.31%, Italy's FTSE MIB index fell 0.51%, and Spain's BEX index rose 0.24%.


With the epidemic in Europe under control and the economy is expected to regain its upward trend, some American investors have begun to turn their attention to European stocks because the latter's valuation is cheaper than that of American stocks.


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