The dollar edged higher across the board on Friday in a quiet session following the U.S. Thanksgiving holiday but remained near multi-month lows as the prospect of the Federal Reserve moderating the pace of its policy tightening weighed on the U.S. currency.
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On Friday, November 25, Beijing time, during the Asian and European trading session, spot gold shocks up, once refreshing this week's high to $ 1761.06 per ounce, now slightly back near to $ 1756.60 per ounce.
On Thursday, November 24, U.S. stocks and bonds were closed due to the U.S. Thanksgiving holiday, and precious metals and crude oil contracts ended trading early, with light trading during the day.
On Wednesday, longtime Tesla bear Citigroup raised its investment rating on the stock to Neutral from Sell and raised the price target from $141.33 to $176, as reported. Ahead of Tuesday's session, the stock had dropped to a three-year low, which wiped out about half a trillion off its market capitalization.
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The OECD flags the UK’s cost-of-living crisis and persistently weak business investment as key factors undermining the country’s growth terminal. The OECD also suggests that Brexit is a key reason as to why the UK will be outperformed by most of its peers next year, as it has severely damaged trade with the EU placing more pressure on the economy at a time of acute financial distress.
The price of the Gold has surprised traders that it goes ahead of FOMC minutes, let's see the economic data released.
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On Thursday,November 24, Beijing Time, during the Asian and European session, spot gold shocks up, once hit a four-day high to $ 1756.72 per ounce. The poor performance of US PMI data overnight and the dovish Fed minutes have put the US dollar index under significant pressure and is expected to fall for the third consecutive session, which has given gold prices upward momentum.
On Wednesday, November 23, the U.S. released mixed economic data; the dollar suffered an intraday selloff, with the dollar index falling to a daily low of 106.03 after the release of the Fed's dovish minutes and finally closing down 0.93% at 106.15. Non-dollar currencies such as the pound, euro and yen rose more than 1% against the dollar.
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On Wednesday, November 23, Beijing time, during the Asian and European trading sessions, spot gold shocked slightly down, and hit a low of $1733.05 per ounce, which closed to the low of nearly two weeks. Although the dollar is still slightly weaker, more due to the improvement in risk appetite, failed to provide gold prices with upward momentum.
On Tuesday, November 23, the dollar and U.S. Treasury yields were subdued amid a lack of major data or events. The dollar index closed down 0.57% at 107.16, ending a three-day upward trend.
Oil markets remain finely balanced going into the winter months, with OECD stocks trending at the lowest levels since 2004. The approaching EU embargoes on Russian crude and oil product imports and a ban on maritime services will add further pressure on global oil balances, and, in particular, on already exceptionally tight diesel markets.
The currency pair has completed a structure of a declining wave to 1.0222. Today a link of correction to 1.0277 is not excluded (a test from below). Then falling to 1.0160 should follow. from where the wave might continue to 1.0111. The goal is local.
Soybeans slid on concerns over demand from top importer China, which is facing rising number of COVID-19 cases.
As the market shows, This week could be a relatively quiet one for the currencies, but it is worth keeping an eye on oil prices and the rhetoric of the Fed officials.