Believe it or not; at the end of the day it is all about what would be done by the Federal Reserve. The change in the foreign exchange market, commodity market, or even the stock market is highly dependent on what the policy or action plan the Federal Reserve has.
The precious metals including gold and silver rose yesterday and as well as today in the Asian session where investors are perceiving the outlook for the bond buying plan of the Federal Reserve, where they don’t see the tapering happening this month, at least. This in turn allowed the investors to stay bullish on the stock market where the SP 500 has tested its previous week’s high of 1811 yet again and is currently trading at 1810 in the European session on Tuesday.
Talking about the metals, the gold gained notably against the U.S. dollar where it has tested 1248 today after bouncing back from 1228 support level from yesterday. On the other side, the crude oil futures rose by 0.4% in the New York session as the demand in the developing countries and as well some of the developed nations including China increased.
Christmas is approaching. New Year is around the corner. Investors are looking forward to buy Macy’s stocks and as well as other retail giants’ stocks as they are expected to announce better than forecasted sales and profitability reports in a month or so.
Moreover, the constant stimulus in the market by the FED has allowed the corporate sector to grow massively due to which consumption has increased, prices have increased, and the unemployment has fallen down as more and more jobs were added. Therefore, the potential is certainly there in the I.T sector and retail sector as the companies are expected to boom more in the upcoming months.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org