Yesterday’s trading session was positive for the S&P500 and the Nasdaq. The S&P 500 was up 0.1% while during this morning’s Asian session, the Nasdaq was up 0.3%. The dollar firmed while 10-year US Treasuries and oil rose. Gold fell.
Oil returned to around $73 a barrel after hovering around $75 a barrel yesterday. Saudi Arabia, taking advantage of its commercial advantage over black gold, plans to open a second national airline and become a transport hub and boost its economy. OPEC+ ministers meet tomorrow to discuss production levels.
Dim Outlook for Gold
Recent comments from the Federal Reserve (Fed) on “transitory” inflation, as well as fresh bouts of Covid 19, have allowed the US dollar to firm, Gold to fall more than 8%, and head for its sharpest monthly fall in 4 years.
The outlook for the traditionally safe-haven commodity appears to be complicated by the Fed’s plans to gradually raise interest rates. A 1.48% rise in 10-year US Treasuries, and a firming US dollar do not seem to be helping the yellow metal.
Today, the markets could experience volatility spikes due to the following events and economic data releases:
- The EIA United States Crude Oil Stocks Change
- United States Pending Home Sales m/m
- ADP United States Nonfarm Employment Change
- United Kingdom Gross Domestic Product (GDP) q/q
- Canada Gross Domestic Product (GDP) m/m
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