The US Congress approved a $900 billion coronavirus relief package, but Donald Trump refused to sign it. He insisted on $2,000 direct payments to Americans, and uncertainty about the US stimulus bill and coronavirus pandemic remain in focus for investors.
The world still needs to face COVID-19 challenges, and some analysts say that a strong bullish sentiment around financial markets is boosted by vaccine hopes as more countries give the green light for vaccination. The price of crude oil closed the week above $48, and it is important to say that a weak dollar makes oil and other commodities cheaper for buyers.
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Analysts stay “bullish” on oil, and they hope that a vaccine will significantly raise oil demand. Gold price remains supported by uncertainty over the global economic future, but this precious metal can still not stabilize above $1900 resistance.
Platinum remains cheap relative to other precious metals, and the current price level still represents a good value for what you pay. It is also important to mention that Britain and the European Union reached a post-Brexit trade deal, but the impact of COVID-19 remains the dominant driver for financial markets.
Crude oil price struggling at $50 resistance
The crude oil price has advanced from $44 above $49 since the beginning of December, and the current price stands around $48.29. Analysts stay “bullish” on oil, and they hope that a vaccine will significantly raise oil demand.
OPEC announced that it would allow increasing output by 500K bpd starting in January, but OPEC still has in mind that travel restrictions and lockdowns could keep demand for oil at low levels in the upcoming months.
If the price jumps above $50, it would be a signal to buy crude oil, and we have the open way to $52 or even $55. The current support level is $45, and if the price falls below this level, it would be a firm “sell” signal.
Gold price is still not able to stabilize above $1900 resistance
While the markets may continue welcoming upbeat vaccine news, the dominant impact of Covid-19 and the uncertainty about the US stimulus bill could keep gold prices afloat.
The current resistance levels are $1900 and $1950; $ 1850 and $1800 represent the critical support levels. If the price jumps above $1900, it would be a signal to buy Gold, and we have the open way to $1950.
On the other side, if the price falls below $1850, it would be a firm “sell” signal, and we have the open way to $1800.
Platinum remains cheap relative to other precious metals
Platinum price has advanced from $964 above $1070 since the beginning of December, and the current price stands around $1025. Platinum trades at a discount to the continuous commodity index, and the current price level still represents a good value for what you pay.
The current resistance levels are $1050 and $1100; $ 1000, $950, and $900 represent the firm support levels. If the price jumps above $1050, it would be a signal to trade Platinum, and we have the open way to $1100.
On the other side, if the price falls below $1000, it would be a firm “sell” signal, and we have the open way to $950.
Summary
The US Congress approved a $900 billion coronavirus relief package, but Donald Trump refused to sign it. Britain and the European Union reached a post-Brexit trade deal, but the impact of COVID remains the dominant driver for financial markets.
