Spot gold staged a long-short double-strike situation on Monday. After breaking the 1900 mark, gold once plunged by $50 and then rebounded to near $1876. Eventually closed down 0.23%, at 1,876.44 US dollars per ounce. In the oil market, due to the impact of the new strain of corona virus in Britain, international oil prices fell sharply on Monday. WTI crude oil fell 5% at one time. As of the close, WTI crude oil fell 2.43% to US$47.84 per barrel.
Fundamental: The “new strain” of the virus in the UK on Monday affected the fermentation and triggered a huge market shock, leading to a surge in panic. Investors chose to hedge the US dollar and abandon gold, causing the price of gold to quickly fall back by US$50 after reaching a new high for one and a half months. The conclusion of the settlement agreement has allowed gold to stop its decline, and the latest news shows that the House of Representatives has voted to pass the rescue plan. In the short-term, the pressure on the top of 1900 is still huge.
Monday’s rush to the previous profit will end, and short-term gold may turn to high-level shocks. The new virus strain in the UK reignited demand concerns, Russia advocated increasing production, and the economic outlook turned pessimistic, which suppressed the growth expectation of crude oil demand, prompting a large number of crude oil longs to leave the market and a large number of shorts to enter the market, which significantly dragged oil prices. US crude oil fell more than 5% on Monday to $46.25 per barrel; however, because the market looked forward to the US stimulus plan, it rebounded to around 47.85 in late trading. Short-term crude oil may fluctuate further and fall back.
At 15:00 in the afternoon, the United Kingdom government will announce the final value of the third quarter GDP annual rate. The market expects that the third quarter GDP will decline by 9.6%.
At 21:30 tonight, the United States will announce the final value of the actual GDP annualized quarterly rate for the third quarter, which is expected to be 33.10%. Also to be announced at the same time are the final quarterly rate of actual personal consumption expenditure in the third quarter and the final annualized quarterly rate of the third quarter core PCE price index.
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