Gold demand in the last days of the year

  • And
  • +A

On Wednesday, shares in Asia sank again under the weight continues to global factors, led by concerns about the slowing global economy, while an alarming picture complements the political uncertainty in the United States. Oil poured into the fire of the recent aggressive statements by the fed Powell.
In the course of trading environment, China’s Shanghai Composite fell 0.4%, however, by the end of the session trimmed losses to 0.2%. Hong Kong’s Hang Seng declined 0.5%, South Korea’s Kospi lost 1.2% and Japan’s Nikkei 225 rebounded 0.9% after the collapse of a 20-month low, having lost a day earlier as much as 5%. Before the resumption of trading in the U.S., futures on the S&P 500 traded down 0.6 percent, indicating another bearish session. Markets of Britain, Germany and France will reopen on Thursday.
The dollar mostly traded under pressure on Wednesday, although the morning’s ranges are very limited due to low trading activity after Christmas. The U.S. currency remains unattractive for shopping, in spite of interesting levels. Players discourages the placing of government work (which is unlikely to resume until the end of the year), tensions between the tramp and the fed, the ongoing trade war with China and uncertainty in many aspects, including political and economic. This is a fundamental and significant factors of pressure on the dollar, which may jeopardize the uptrend of the USD next year, if the situation will not change for the better.
_____________
Nathan Lambert
Head of research,
Global FX