Financial Markets Daily

Gold prices fell more than 3 per cent to their lowest level in more than a month on Monday as uncertainty over more us fiscal stimulus led to a broader market sell-off and a stronger dollar weighed on prices. Spot gold intraday touched $1,882.60 an ounce, its lowest level since August 12.

In the currency market

Euro: The euro fell against the dollar for a second day, closing down 0.59% to $1.1767. Technically, the pivot point of the currency is at 1.1791, the initial resistance to the upward movement of the exchange rate is at 1.1851, further resistance is at 1.1932, and the key resistance is at 1.1992. The initial support is at 1.1710, further support is at 1.1650, and more critical support is at 1.1570.

Sterling: Fell for a second day against the DOLLAR, closing down 0.80% at 1.2812. Technically, the pivot point of the currency is at 1.2852, the initial resistance to its upward movement is at 1.2929, further resistance is at 1.3043, and the key resistance is at 1.3121. The initial support is at 1.2737, further support is at 1.2660, and more critical support is at 1.2746.

Yen: The dollar rose for the first time in six days to close at 104.64 yen, up 0.09 percent. Technically, the pivot point of the currency is at 104.50, the initial resistance to the upward movement of the exchange rate is at 105.02, further resistance is at 105.41, and the key resistance is at 105.93. Initial support for the lower exchange rate is at 104.12, further support is at 103.60, and more critical support is at 103.21.

The stock market

New York (Ap) — The Dow Jones Industrial Average fell 509.72 points, or 1.8%, to 27,147.70 as investors fretted about a new coVID-19 outbreak and uncertainty about further fiscal stimulus unnerved traders. The S&P 500 fell 1.2% to 3,281.06. The Nasdaq composite index closed down just 0.1% at 10,778.80. The Dow fell more than 900 points and the S&P 500 fell as much as 2.7%.

London (Reuters) – European shares closed sharply lower on Monday, Posting their biggest losses since June 11, as fears mounted that a surge in coronavirus cases could lead to a new lockdown and bank shares fell sharply after a flood of leaked documents showed Banks were involved in suspicious trading. The Pan-European Stoxx 600 index closed down 12.35 points, or 3.35%, at 356.43. Bank stocks tumbled 5.7% and travel stocks tumbled 5.4%, with all sectors and major markets down. Germany’s DAX index closed down 573.81 points, or 4.37%, at 12,542.44. Britain’s FTSE 100 index closed down 202.76 points, or 3.38%, at 5,804.29. France’s CAC-40 index closed down 186.14 points, or 3.74%, at 4792.04. Spain’s IBEX35 index closed down 237.50 points, or 3.43%, at 6,693.30. Italy’s FTSE index closed down 731.59 points, or 3.75%, at 18,792.35. In Europe, the Stoxx 50 index closed down 122.74 points, or 3.74%, at 3,160.95.

Commodity markets

Spot gold closed at $1912.23 an ounce, down $37.49, or 1.92 percent, after hitting an intraday low of $1,882.60 an ounce, its lowest level since August 12, down 3.4 percent after hitting an intraday high of $1955.40. Spot gold rose $10.03, or 0.52 percent, last week.

Gold futures for December delivery on COMEX fell 2.6 percent to $1,910.60 an ounce, the lowest close since July.

Oil prices plunged on Monday as Libya hinted that some crude oil exports will resume and a surge in novel Coronavirus cases clouded the outlook for demand and weighed on risky assets. Brent crude for November delivery ended down $1.71, or 4 percent, at $41.44 a barrel. Last week, WTI oil rose $3.78, or 10.1%. Oilseed rose $3.32, or 8.3%, last week.

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