Global stocks and commodities started the new on a bearish note due to rising COVID-19 cases and newly recorded deaths in China fuelled concerns over the global economic outlook. China, the world's second-largest economy reported another record high COVID-19 infections on Monday. China posted close to 40,000 coronavirus cases on Monday and for the 5th consecutive day, China reported close to 4,000 cases in the capital city of Beijing.
Moving ahead to the last week of this month investors remained cautious over China's COVID situation. This week, traders and investors should also pay attention that the November U.S. unemployment report is due Friday. The NFP expectations are for 200k jobs to have been added to the US economy in November.
On the earnings front, the companies scheduled to release their last quarter financial results this week will be Crowdstrike, Salesforce, Snowflake and Xpeng.
The precious metal managed to regain early-week losses and closed above $1750 on Friday. Looking to the rising coronavirus cases, geopolitical tensions and rising global inflation could continue to keep precious metals volatile. For this week, the main drivers for the precious metal remain the movement of the US dollar, the US employment report and ongoing China’s Covid-19 outbreak.
This week, $1,745 is the immediate support level, followed by $1,730. If the metal breaks below the $1,730, the slump will quickly extend toward the $1,720/18 mark. On the upper side, gold is likely to find immediate resistance at $1,762, any break above the $1,762 level could lead the prices of the precious metal towards the next resistance levels of $1,772 and $1,780.
The Greenback, in terms of the US Dollar Index (DXY), regained momentum on Monday morning as investors turn to its safe-haven appeal amid escalating fears about the latest spike in coronavirus cases and deaths in China. During the previous week, the dollar ended in negative territory driven by dovish FOMC meeting minutes. The latest minutes from the Federal Reserve's latest meeting suggested there will be a slower pace of interest rate hikes in the coming months. Moving ahead, the US dollar is likely to see high volatility this week as US GDP and NFP numbers will be posted.
On the weekly time frame, the DXY is currently supported at 105.60 and the resistance is around 106.50. If the greenback continues to fall this week, the key support level is 105.60 and 105.30/10. On the upper side, in case the metal manages to settle above 106.80, it will gain upside momentum and head towards the next resistance level at 107.30.
The currency pair rebounded and continued to shine last week supported by the weak dollar and better-than-expected German GDP data. The key data for Euro for this week will once again be the inflation data from Eurozone and Germany. However, the US dollar movement will continue to play a vital role in this currency pair's future direction.
This week, the first resistance is located above the monthly high‘s 1.0470, a break above this level will confirm a possible move to 1.0510/50. On the downside, the euro is supported at the 1.0310 level, any break below this level will open the doors to 1.0270/50.
Major stock indices and Dow jones started the new week on a mixed due to by surging Covid cases in China and discussions around the price cap on Russian crude. During the previous week, Dow Jones and other US indices rose modestly as investors reacted to the latest minutes by the Federal Reserve. Investors will shift their attention this week, to coronavirus-related headlines and corporate earnings with some of the biggest U.S. companies reporting their earnings later in the week.
This week, If the bullish momentum continues then the next upside level is to watch 34,400 and 34,600. On the flip side, the first support for the Dow appears to be around 34,000, in the short-term any break below 34,000 is the next downside level to watch is 33,650/500.
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