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In an interview with Dubai TV, Director of Research and Development at Noor Capital, Mohamed Hashad takes a closer look at the markets.
Oil
Oil began to rise towards $ 41 levels on their way to record the second week of gains by more than 10%. There are several factors that have contributed to pushing oil, including:
- The optimism sentiment in the market after Pfizer Pharmaceutical Industries announced a 90% effective vaccine for Coronavirus.
- OPEC’s efforts to support production and stimulate prices, as the organization decided to postpone the plan to increase production 3-6 months, with a compliance rate of 101% to production cut agreement, with prices ranging between $ 37- $ 45.
Unless we witness any technical trading below 37, Hashad thinks that the near-term targets are levels of $ 45 a barrel, which is a fair price for both producer and the consumer.
Asia
Asian stock markets have been in a collective rally, with the Shanghai, TOPIX and Nikkei indices reaching their highest levels in several months on positive data from Japan and China, especially China, with the economic growth rate rising to unprecedented levels at its highest level in several years, as well as industrial output.
All added to the state of optimism in the Asian markets, which in turn moved to the European session as main indices opened on gains, with the DAX up by 0.7% at 13230, and the markets priced this as the beginning of the economy’s recovery and a promising start to Q1.
Gold
All scenarios are on the table for gold, as last week we saw a significant decline from 1965 to 1950 dollars an ounce. There are major factors that will drive the yellow metal in the near term.
– Covid-19 Cases Continue to increase, especially in the United States, as cases today exceeded 11 million. The question remains whether it will impose new shutdowns in the US economy as they did in March and July.
– The state of political confusion in the United States, the ambiguity of the US election results.
The most important levels of gold are 1901 and 1934.