Oil Christmas season consolidation/Gold bullish continuation/Greenback persistent weakness

Dec 31,2019

Regain Capital

Overnight Reviews:

Gold: 0.30%

Silver: 1.00%

US Index: -0.07%

WTI Oil: -0.11%

NDX: -1.02%

Oil Christmas season consolidation

After the last gains registered on Boxing Day, the crude oil market keeps its consolidation, showing little action but still in the bullish grounds. However, market risk sentiment is working out, and prices are likely to get supported, where yesterday, a new high was recorded by the WTI benchmark testing 62 handle.

Gold bullish continuation

The yellow metal continues its rally after last Friday break, reaching a level last seen in September, trading as we write this report at 1,521$. This bull run is attributed to the recent US dollar weakness across the board and Geopolitical tensions in different fronts; the US-China trade deal, US struggle in the Middle East, and the latest concern about North Korea have increased the risk appetite for the safe-haven commodity.

Greenback persistent weakness

With five trading sessions in a row, recording negative performance, the US dollar weakness has caught the market by surprise. Markets’ risk attitude and the USD’ performance are likely to continue before investors take a one day break on Wednesday to continue its bearish journey into 2020.

Main Events Today GMT +8

09:00 CNY Manufacturing PMI

23:00 USD CB Consumer Confidence

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Oil Christmas season consolidation/Gold bullish continuation/Greenback persistent weakness

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