Hold Brent above USD50
Brent crude surpassed USD50 for the first time since March on Thursday and is all about retaining early trade today. At the time of writing, he is testing this level strongly from above but still. Weekly closures above here could be a very encouraging technical signal to the markets after an incredible run over the past six weeks.
The long-term outlook for the global economy is far from rosy but OPEC + addressed this last week by halting planned production increases back from January and instead tapering ‘ n much more gradual over the opening months of the year. It’s never that simple and they are far from the trees but a grip above USD50 would be very encouraging.
Gold eases into the Fed talks and impetus
Gold is coming under some pressure again this morning, adding to losses over the past few days as traders lock in some profit before a big week for the US. Stimulus talks, Fed meeting and vaccine delivery take about a week and gold should be very sensitive to developments, especially in relation to the first two.
With Congress acting late in the day and no deal yet agreed, the Fed may be forced to step up and do something to keep markets afloat. The economy is facing a harsh winter and more support is welcomed. That may be enough to support gold prices but we could see them soften slightly, towards USD1,800 in the period ahead.
Amazing end of the year for bitcoin
Bitcoin is not having a good week, down nearly 9% since Monday and below USD18,000. This comes after multiple failures to break USD20,000 and suddenly USD16,000 looks more vulnerable than it did before. I still believe that breaking into new territory above USD20,000 is more likely, but moving below USD16,000 would be a huge test of the bitcoin buzz that saw it hit new highs earlier this month. It should be a very interesting end to the year.
For a look at all of today’s economic events, check out our economic calendar. www.marketpulse.com/economic-events/
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