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Market Wrap, Gold Clears Resistance – US Indices Continue Records heading to Christmas Break

jeffriess
December 24, 2019
by Joseph Jeffriess, Market Analyst

Article Recap

Tonight's see's the start of the Christmas break with Australian, European, and US bank holidays starting from this afternoon. Most markets will also be closed on Boxing Day.

U.S indices continue to drive higher, gold clears resistance hitting 2-month highs, risk see a mixed night to the USD.

The Christmas rally continued overnight for U.S stocks, indexes hitting new records for the 2nd day in a row. The Dow added 0.34% the SPX  closed 0.09% higher, fading after setting 3227.78 as a new all-time high. The Nasdaq closed 0.23% higher. Chinese tariff reductions in what looks like a smoother trade deal transition continues to support buyer momentum at this stage. So far the Nasdaq continues to lead the gains in December, the NDX100 up 3.14% heading to the Christmas break.

Gold hit two-month highs in today’s session after buyers beat  1486.74. This continues on from yesterday solid session which saw a break of range resistance and a 0.48% gain.

The risk majors closed mixed to the USD overnight, the EUR snapped a losing streak to the USD while the GBP made it five in a row with a 0.50% drop. The AUD, on the other hand, continued its recent strength hitting .6828. This level has set up as resistance in today’s Asian session, price 0.10% lower after buyers failed in an early rally. For now, 0.6830 continues as resistance for AUDUSD buyers. This level also lines up on the weekly as med-term resistance.

Oil posted small gains overnight (+38%) so far today trade has been quiet. A hold above $60 could confirm short-term support and possible continuation. A break and sellers could be setting up a new lower high.

So far the ASX200 has seen quiet pre-Chrismas trade, price closing 9.10 pts higher, Asian shares remain quiet with the Nikkei +2.89 pts and the Hang Seng 0.19% lower.

Tonight’s see’s the start of the Christmas break with Australian, European, and US bank holidays starting from this afternoon. Most markets will also be closed on Boxing Day. Some of the main Asian market centres will remain open over the Christmas break. From Christmas to NYE volatility is low, this can cause quieter conditions but at times due to the low volatility moves can be exaggerated. Keep this in mind if you plan to trade over that period.

Merry Christmas from Eightcap.

Good trading from Eightcap.
All times are AEDT.