Gold moves higher as US stocks falling

　　

U.S. equities kept falling as Gold seemed as a hedge currency, S&P 500 is starting to turn more decisively lower and the gold price raised 0.86%. The Dow Jones Industrial Average has little raise to close at 33597.92. The S&P 500 dropped 0.19% to close at 3933.92. The tech-heavy Nasdaq Composite dropped 0.51% to close at 10958.55. After a result, the risk-off factor came from Moscow, mid-US session. Russian President Vladimir Putin warned that the threat of a nuclear war is rising, coming with the news, yields finished the day in the red, as demand for government bonds resurged. U.S. 10-year treasury yield sits at around 3.438%.  The policy-sensitive 2-year treasury yield sits at 4.26%.

The dollar index slipped on Wednesday, reversing the bounce of the past two days after it repeatedly failed to clear strong resistance at $105.57.Although fundamentals are getting mixed for the dollar, deflated since October by speculations that the Fed would slow the pace of its aggressive policy tightening, as the latest economic data signal that the US economy remains quite robust and less harmed by a strong rise in interest rates than initially anticipated.

Besides, earlier in the day, China announced a series of measures relaxing coronavirus restrictions, moving away from the zero-Covid policy and the US Dollar finished Wednesday with losses against most of its major rivals, despite a dismal market mood. The decline was contained, but it’s clear that the tie has changed for the American currency and more declines are now on the docket.

Main Pairs Movement

The US dollar finished with losses on Wednesday, after a consecutive rise since the beginning of the week. Earlier in the day, China announced a series of measures relaxing coronavirus restrictions, moving away from the zero-Covid policy, and another risk-off factor came from Moscow, mid-US session. Russian President Vladimir Putin warned that the threat of a nuclear war is rising, adding that nuclear weapons could be used to defend itself and its allies.

EUR/USD was up for the day but off high on Wednesday, the pair had fallen to below  1.05 following the warns by Russian President Putin about the increasing nuclear war risks, however, after two consecutive daily losses, recovering from the three-day lows, the primary trend remains bullish and is aiming the resistance at 1.0600.

The gold price rose and broke the $1780, thanks to the optimism surrounding China and the risk from  Russia’s nuclear threat, also with the United States Treasury bond prices rallied, together with the Gold price, which in turn drowned the bond yields and the US Dollar, the benchmark 10-year Treasury bond yields dropped to the lowest levels since early September by losing 3.30% in a day to 3.42% level at the latest. Further, the politic-sensitive two-year counterpart dropped 2.54% to the 4.26% mark.

Economic Data

Currency	Data	Time (GMT + 8)	Forecast
JPY	GDP (Q3)	07:50	-0.3%
EUR	ECB President Lagarde Speaks	20:00	–
USD	Initial Jobless Claims	21:30	230K