(25 November 2020)DAILY MARKET BRIEF 2:Gold continues to decline
In the commodity market, oil prices continue to increase on the back of vaccine news and the presidential transition in the US. WTI is up 0.70%, and Brent has added 0.85% to trade above $45 and $48, respectively. Both brands are trading at their highest levels since March. Investors ignored data from the American Petroleum Institute, which showed a 3.8 million-barrel build in oil inventories last week. Analysts expected a decline to 0.333 million barrels.
Gold continues to decline as investors turn away from safe-havens, focusing on risk assets instead. The move is backed by the vaccine optimism, after Pfizer, Moderna, and AstraZeneca said that their vaccines showed an efficacy rate of over 90%. Gold futures are down 0.18% to $1,801 for the first time since July.
In FX, the US dollar is losing ground as safe-havens are not in the spotlight right now. The USD Index is down 0.04% to 92.177. EUR/USD is up 0.04% to 1.1893.
The pound is declining against both majors. US President-elect Joe Biden said that there should be no hard border on the isle of Ireland, even though the European Union requires a border as part of the post-Brexit trade deal. Still, JPMorgan said that there was an 80% chance for a deal to be achieved by the end of next month.
