Markets Continue to Remain Dicey

Markets Continue to Remain Dicey
Holiday mood, want of major catalysts, and year-end inaction test market optimism, make markets dicey.
Gold price plummeted for the first time from $1,814 after its four-day good run after facing resistances around $1,812. In the given conditions, bears would be eyeing to reach the $1792 mark.
US Treasury yields managed to cling to 1.48% despite the 1.7 base point decline on Monday, failing to extend the pullback that was seen on Monday. However, Fed’s rate hike concerns may keep US Treasury yields firmer, thus favouring the US Dollar Index.
On the other side, PBOC’s suggestions to sustain the growth of Chinese economy by quantitative easing is making traders rethink, offering some relief to the markets. Through 7-day reverse repurchase agreements, PBOC pumped $31 billion liquid cash into China’s financial system.
The Japanese Finance Minister’s comments on inflation also came as a relief but its effects are yet to reflect in the market. Earlier, Mr. Shunichi Suzuki said he does not think the recent inflation will negatively affect the economy. However, USD/JPY remains unfazed at 114.90 despite hearing this comment from the finance minister.
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