【TOP1 Morning】Gold steadies and dollar slides for the third day, Oil prices end mixed ahead of EIA data

Yesterday Market Review

Gold

Gold rose on Thursday to its highest in nearly two weeks as the U.S. dollar eased on hopes of further stimulus under President Joe Biden's administration, although some profit booking checked the metal's gains.

The spot gold closed at $1869.46 per ounce; the volatility within the day is $1858.25-$1875.02.

"It is nothing more than some simple profit-taking after the recent rally prompted by expectations for further stimulus coming from the Biden (administration)," said David Meger, director of metals trading at High Ridge Futures.

"However, the prospect of the further stimulus along with a weaker dollar continues to support gold in the bigger picture perspective."

Meanwhile, the number of Americans filing new applications for unemployment benefits decreased modestly last week.

The silver closed at $25.847; the volatility within the day is $25.622-$26.028.

Bitcoin slumped for a second day Thursday, taking the digital currency's losses to more than 10% over 48 hours and wiping off billions of dollars from the crypto market.

The price of bitcoin slipped 8% on Thursday to as low as $31,007, falling below the $32,000 level for the first time since Jan. 11, according to data from industry website CoinDesk.

The world's most valuable digital coin has had a wild few weeks, briefly hitting $41,940 earlier this month before sinking sharply the subsequent week. The reason for its latest move wasn't immediately clear, but investors said it is likely a natural correction.

"Corrections are a natural part of any market and are especially natural in the bitcoin ecosystem," Michael Sonnenshein, CEO of Grayscale Investments, told CNBC. "From 2016-2017, we experienced six corrections of approximately 30% or more on the way to new highs."

Forex

The dollar fell for a third straight session on Thursday, with investors seeking out higher-yielding currencies, as a slew of better-than-expected U.S. data and continued optimism about a massive stimulus package spurred hopes of a recovery in the world's largest economy.

The U.S. dollar index closed at 90.07; the volatility within the day is 90.03-90.40.

The euro, on the other hand, gained versus an overall weak dollar, even as European Central Bank President Christine Lagarde warned about a renewed surge in COVID-19 infections and the prospect of prolonged restrictions that could challenge the region's economic outlook.

The ECB, which kept interest rates steady on Thursday, also pledged to provide more support for the economy if needed.

The euro gained 0.5% against the dollar to $1.2163 , rising 0.5% as well versus the yen to 125.92 yen.

Crude Oil

Oil prices steadied on Thursday after industry data showed a surprise increase in U.S. crude inventories that revived pandemic-related fuel demand concerns, while U.S. stimulus hopes buoyed prices.

West Texas Intermediate crude settled at $52.969 volatility within the day is $52.711- $53.373. International benchmark Brent crude closed at $55.850, volatility within the day is $55.400-$56.133.

"We are on pause until we get the inventory report," said Phil Flynn, senior analyst at Price Futures Group in Chicago. "The market is waiting to see what we're going to see in inventories tomorrow and stimulus down the road."

Elsewhere, compliance with a deal to cut output from the Organization of the Petroleum Exporting Countries and its allies fell in December from November. Compliance reached 99% last month, two sources told Reuters.

Meanwhile, rising coronavirus cases in China, the world's largest crude oil importer, weighed on prices.

Stocks

The Nasdaq Composite rose to another record on Thursday as investors bet on strong earnings from big tech companies next week.

The tech-heavy benchmark climbed 0.6% to close at a new high of 13,530.91 as Apple shares popped 3.7%. The Dow Jones Industrial Average dipped 12.37 points to 31,176.01, after touching an intraday record earlier in the day. The S&P 500 gained less than 0.1% to 3,853.07, eking out another fresh high.

Apple's jump came after top analyst Katy Huberty from Morgan Stanley said she expects a record December quarter print for the tech giant. Optimism is rising that major technology companies will impress Wall Street when they hand in earnings reports next week. Apple and Facebook have risen 7.7% and 8.6%, respectively, this week ahead of their quarterly results, while Microsoft has gained 5.8%.

The biggest tech names, Apple and Microsoft, followed by Amazon, Alphabet and Facebook were the biggest contributors to the market's gains last year. When the market began to rise after the sharp coronavirus pandemic-induced sell-off in March, it was those stocks that led in a broader stay home trade.

"We see the pace of vaccinations as a key driver of equities through 2021, similar to how shifts in mobility and Covid cases drove equities in 2020," Keith Parker, head of equity strategy at UBS, said in a note. "Removing bottlenecks for administering doses would present an upside case near-term."

Focus Today:

22:45 (GMT+8): United States Markit Manufacturing PMI Flash (JAN), Forecast: 56.5, Previous: 57.1;