ZFX: Markets were mixed amid historical gold price

Stock markets in Asian region were mostly higher on Tuesday, while there are both bullish and bearish news overnight. Optimism was boosted after those companies announced the vaccine developments are now taking step to the late-stage trials. However, the tensions between China and the US is still a big reason for investors to seek safe haven, causing gold price reached a new record high of $1940 level. Silver price even jumped more than 8%，reaching $24.5 level.

In the early European session on Tuesday, most stocks advanced as investors are looking forward to the new $1 trillion coronavirus relief plan of the US government. The upcoming meeting of the FOMC on Wednesday would be one of the bullish factors as the Fed may further show the dovish policy stance to the markets.

On the other hand, the global pandemic is still severe, which more than 16.3 million cases have been confirmed worldwide, with more than 650000 deaths. It is no doubt that it will weigh on market sentiment all the time.

ZFX analyst Jacob Leung said that, gold price sharply dropped from the record high today. This sudden move may be related to the profit taking activities as the gold price is already approaching $2000 milestone. It drives the investors to lock the profit especially after the recent big increase. It should be noticed that the correction may happen in the FX side amid the weak greenback.

Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.