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The depreciation of the dollar pushed gold higher, while Wall Street was influenced by the profit-taking activities of investors at the end of the year.
As the session closed on December 23, the global spot price of gold rose by $ 13 an ounce to $ 1,872. This morning session, the price was still fluctuating around this level.
The market rises when the price of the US dollar bottomed for more than 2 years compared to a basket of major currencies after the information about the stimulus package in the US In addition, the commitment of the US Federal Reserve. The US (Fed) of pumping money and keeping interest rates low also supports precious metals.
Movements in world gold prices in recent sessions.
“The Fed’s decision clearly shows that they are not convinced by the US economic recovery,” said Peter Fertig, analyst at Quantitative Commodity Research. “In addition, the position of the Fed and central banks. According to other governments, inflation will continue to rise in the future In the context of the devaluation of the dollar index, gold is clearly an attractive investment tool.
Ravindra Rao, deputy director of commodities at Kotak Securities, said that the current price of gold has a solid base and “if it closes above $ 1,880, it could reach $ 1,950 by the end of this year.”
In the United States stock market, yesterday’s indices did not change much. The S&P 500 lost all of its intraday gains due to investors’ profit-taking activities at the end of the year. Political instability also puts pressure on the markets, as US President Donald Trump faces Congress.
Trump opposes the $ 900 billion stimulus package approved by the United States Congress, especially the monetary aid for people that he believes is too low. He also vetoed the US Defense budget bill.
The S&P 500 rose nearly 0.1 percent yesterday to close at 3,690 points. DJIA was up 0.38% to 30,129 points. The Nasdaq Composite fell 0.3 percent again to 12,771 points, as heavyweights such as Amazon, Apple and Microsoft fell.
Travel stocks rebounded as concerns about the new strain of the virus in the UK waned. United Airlines and Delta were up 2.7%. Carnival and Norwegian Cruise Line increased 5.7% and 6.2%, respectively. Medical experts believe that the current vaccine is effective enough against this new strain of the virus.
Ha Thu (Theo Reuters, CNBC)
