According to Motilal Oswal, This week we’ll be keeping an eye on the US-China trade relationship a narrative which was strangely quiet last week but which we expect to have a louder drumbeat as we get closer to the election in November.
Motilal Oswal's report on Precious Metals Weekly
Gold prices were very volatile in the past week marking high of ~$1740 and low of ~$1710. Yellow metal has got an advantage from the Federal Reserve announcements and thereby triggering volatility in US stock markets. Last week, US equities rose near its all-time levels after Fed announced to hold rates low until 2021. Many nations across the globe have eased restriction and at the same time some positive breakthrough on the Covid vaccine has kept gains capped for the yellow metal. Although losses were capped by the ongoing US-China tension, lower yield curve and central bank announcements increasing pressure in the market.
Outlook
This week we’ll be keeping an eye on the US-China trade relationship a narrative which was strangely quiet last week but which we expect to have a louder drumbeat as we get closer to the election in November. BOE and BOJ will be releasing its policy statement later in the week. Focus will also be on what more measure are taken by the leader in order to combat the COVID-19 as it remains a core driver for highly risksensitive markets like gold.
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