Gold price slightly rebounded from the previous session lows. The yellow metal plunged more than 3% and closed to near $1800 on Tuesday. Moving ahead to the North American session, the gold investors and traders will keep an eye on the US GDP and durable goods data due later in the session.
Wall Street ended higher on Tuesday following the news about the President-elect Joe Biden’s transition to the White House. Dow Jones climbed above 30000 levels as market participants anticipate larger fiscal stimulus package to be rolled out once Biden comes to power.
Crude oil prices trading steady on Wednesday despite weaker-than-expected API inventory data. The data showed a 3.8 million-barrel build in oil inventories last week. Analysts expected a decline to 0.333 million barrels.
In the currency market, the EURO rose to a fresh monthly high of 1.1828 during the European session boosted by the weaker dollar and better-than-expected economic data.
Gold prices trading above $1810 during the European session ahead of US jobless claims and GDP data. Overall, the momentum remains mixed throughout the day.
On the post-Brexit front, European Commission President Ursula von der Leyen told the European Parliament that EU negotiators would do all in their power to reach an agreement with the UK. “These are decisive days for our negotiations with the United Kingdom. But frankly, I cannot tell you today if, in the end, there will be a deal’ “There are still three issues that can make the difference between deal and no deal,” she said.
Moving ahead today, the important events to watch:
US – Initial jobless claims: GMT – 13.30
US – GDP: GMT – 13.30
US – Durable goods orders: GMT – 13.30
US –FOMC meeting minutes: GMT – 19.00
Worldwide, more than 59.4 million people have been confirmed infected and more than 1.4 million have died, according to Johns Hopkins University. The United States has passed 12.5 million confirmed cases, with more than 258,000 deaths from COVID-19, the highest totals in the world. The number of coronavirus infections in Russia rose by 24,7K on Wednesday, down from 23.4K on Tuesday.
EUR/USD: The currency pair retreated back to below 1.1900 psychological level. If the bullish momentum continues the next upside levels to watch 1.1950 and 1.20. On the downside, the immediate support around 1.1840.
The important levels to watch for today: Support- 1.1890 and 1.1840 Resistance- 1.1930 and 1.1980.
GBP/USD: The British pound trading lower against the US dollar and EURO following the comments from President-Elect Joe Biden. Mr Biden said: “We do not want a guarded border; we want to make sure we work too hard to get Ireland worked out.
The important levels to watch for today: Support- 1.3300 and 1.3270 Resistance- 1.3340 and 1.3380.
Quote of the day: Remember, your goal is to trade well, not to trade often- Alexander Elder.
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