Brent Holding Above US$50
broke above US$50 for the first time since March on Thursday and is just about holding on in early trade today. At the time of writing, it’s strongly testing this level from above but holding. A weekly close above here could be a very encouraging technical signal for the markets after an incredible run over the last six weeks.
The near-term outlook for the global economy is far from rosy but OPEC+ addressed this last week in paring back planned production increases from January and instead tapering far more gradually over the opening months of the year. It’s never that straightforward and they’re far from out of the woods but a hold above US$50 would be very encouraging.
Gold Easing Into Fed, Stimulus Talks
is coming under a little pressure again this morning, adding to losses over the last couple of days as traders lock in a little profit ahead of a big week for the U.S. Stimulus talks, a Fed meeting and a vaccine rollout is some week, and gold should be very sensitive to developments, particularly in relation to the first two.
With Congress acting late in the day and no deal being agreed yet, the Fed may be forced to step up and do something to keep markets onside. The economy is facing a brutal winter and more support will be welcomed. That may be enough to support gold prices but we could see them soften a little, towards US$1,800 in the run up to it.
Fascinating End To The Year For Bitcoin
is not having a good week, down almost 9% since Monday and below US$18,000. This comes after multiple failures to break US$20,000 and suddenly US$16,000 is looking more vulnerable than it previously did. I still believe a break into new territory above US$20,000 is more likely, but a move below US$16,000 would be a massive test of the bitcoin buzz that saw it hit new highs earlier this month. It should be a fascinating end to the year.
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