fbpx

PU Prime App

Exclusive deals on mobile

  • Market Insights  >  Weekly Outlook

8 December 2022,05:09

Weekly Outlook

Gold Struggles to Find Direction even as China Eases Covid Restrictions

8 December 2022, 05:09

Share on:
FacebookLinkedInTwitterShare
Share on:
FacebookLinkedInTwitterShare

China has announced that it will be lifting its strictest covid policies, including being forced to quarantine in state facilities and the need to test before entering most venues. The easing has been released in a series of new guidelines that include a ban on blocking fire exits, encouraging vaccinations among the elderly, and shortened lockdown periods. 

The easing of covid restrictions has given the markets hope that the world’s second-largest economy will be transitioning towards a “living with covid” model that most countries have embraced. The hope is that China will re-open an economy that have been plagued by lockdowns and curbs – and, among other things, ease supply chain disruptions and restore air travel.

That said, for investors looking forward to risk-positive news, China’s economic reopening is being tempered by warnings of a recession coming in from Wall Street even as growth slows in the U.S. and beyond.

Post-Market

For gold traders, it’s been a directionless few days as bulls and bears fight for dominance in the face of mixed hints as to whether things should be risk-on or risk-off. Gold has been trading in a relatively tight range, rising 1% overnight following the retreating U.S dollar and Treasury yields  – just after a 1.6% increase on the back of a surprisingly high read on the U.S. ISM services data. 

The reopening of China, traditionally the world’s biggest consumer of physical gold, also lends further support to the precious metal. The country’s central bank has recently reported that it bought 32 tonnes of gold in November, the first increase in reserves since 2019. 

“Gold in the next few trading sessions has more downside risk than upside, prior to the FOMC meeting,” said Michael Langford, director at corporate advisory firm AirGuide.

Where can investors find further clues on the direction of gold? Watch out for the U.S. CPI figures, which will be released at 15:30 (GMT+2) on Tuesday, 13 December. The inflation read will dictate further Fed direction on interest rates – next released at 21:00 on 14 December (GMT+2) – and thus whether it is worth it for the markets to move toward the non-yielding gold. 

As a  friendly reminder, do keep an eye on market changes, control your positions, and manage your risk well. 

Inizia a Fare Trading con un Vantaggio

Scambia forex, indici, Metalli e altro ancora a spread bassi e con un'esecuzione fulminea.

  • Inizia a fare trading con depositi a partire da $50 sui nostri conti standard.
  • Ottieni accesso all’assistenza 24/7
  • Accedi a centinaia di strumenti, a strumenti didattici gratuiti e ad alcune delle migliori promozioni in circolazione.
Iscriviti Ora

Latest Posts

Apertura del conto semplice e veloce

Apri Conto Reale
  • 1

    Registrati

    Registrati per un Conto Reale PU Prime con la nostra semplice procedura.

  • 2

    Finanzia

    Finanzia senza fatica il tuo conto con un'ampia gamma di canali e valute accettate.

  • 3

    Inizia a Fare Trading

    Accedi a centinaia di strumenti a condizioni di trading leader del mercato.

Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.

Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.

By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.

Thank You for Your Acknowledgement!

Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.

Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.

Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.

Thank You for Your Acknowledgement!