Thanksgiving Stalls Markets – For a Day
As expected, investors took the opportunity of the big US Thanksgiving Day holiday to put their feet up and markets remained largely rangebound over the course of yesterday’s trading day. Asian bourses are set for a muted start to the day without the usual leading momentum from their US counterparts, however currencies never close during the trading week and the dollar remained on the back foot yesterday as the Euro gained ground after key PMI numbers came in better than expected. Oil remained volatile and dropped 1% on the day as concerns over the delayed OPEC+ meeting continued to weigh, and Gold stayed treading water just under the $2,000 level.
Gold Hovering Around Pivotal $2,000 Level
Gold traders are looking ahead to the next few weeks trading into the new year with strong anticipation that the precious metal will not be sitting around these levels by the time we hit 2024. It has had a strong run up in the last six weeks as geopolitical fears and a weakening dollar have combined to drive the price up over 11%, bulls are concerned that those two factors could combine to see that move reversed. The geopolitical situation in the middle east, although still vulnerable, does seem to be moving in the right direction with ceasefires and diplomacy hopefully replacing bullets and missiles more over the next few weeks and traders are questioning how much further the dollar can fall with a still cautious Fed. If we do see a reversal in both these factors, then expect Gold to move swiftly back down to those levels seen in early October.
US Reopens After Thanksgiving Holiday
Traders are preparing for a somewhat busier day today after the usual disruption of the Thanksgiving Day break. APAC markets have already seen the first data release of the day with the Kiwi slightly better bid after Retail Sales numbers came in better than expected early in the session. Japanese traders will be paying close attention later in the day to the Core CPI number which is expected to come in at 3% year-on-year. The European session see’s the latest release of the German Ifo Business Climate data as well as another speech from ECB President Christine LaGarde. However, most investors are expecting to see a lively final session to the week as the US reopens. Initial focus will be north of the border as the Canadian Retail Sales data is released but later in the day the US Flash PMI number are due out which could add further volatility in what is likely to be thinner market conditions into the weekend.
