Overnight Market Review On Wednesday (December 28) Asian session, spot gold fluctuated within a narrow range and is currently trading around $1,810.84 per ounce. It once reached a new high of US$1,833.18 per ounce in the past six months, but the rise in US Treasury yields limited the gains.
“Gold is watching China’s decision to further ease COVID-19 restrictions,” said Bob Haberkorn, senior market strategist at RJO Futures, expecting higher demand in the region despite rising U.S. bond yields.
China on Monday (December 26) further relaxed the prevention and control measures of the new crown epidemic, awakening the tourism industry that has been dormant for nearly three years. Following the abolition of “arrival inspection” in various parts of the country, the abolition of nucleic acid testing and centralized isolation for inbound personnel will further clear away policy obstacles to the flow of people.
The holdings of gold ETFs have also increased. The holdings of the world’s largest gold ETF, SPDR, increased by 5.5 tons on Tuesday, the largest one-day increase since May 20, to 918.51 tons, a new high in nearly two months, suggesting that institutional and professional Investors’ bullish sentiment has further heated up.
Trading strategy suggestion: high short
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