Bondasia: THE DOLLAR ENDs 3 Consecutive Gains Gold rushes higher to refresh 8-week highs

According to the World Gold Council, as Indian gold buyers get used to "living with the virus", India's gold demand will remain strong and will not be affected by the recent pandemic. India is one of the world's largest consumers of gold, and gold is an essential part of Everyday Life in India. India's demand for jewellery gold dominates total demand. The demand for such gold is mainly driven by clothing such as salisans worn at weddings. In addition, gold also has an auspicious meaning, and buying gold is one of the rituals of celebrating festivals in India. Gold purchases in India usually peak in October-December of each year, as this time period has some of the biggest festivals in the Hindu calendar and is also the season when weddings like to be held. The World Gold Council previously estimated that India's gold sales in the fourth quarter of 2021 were the best in at least a decade. While india's local governments have imposed some restrictions on economic and other activities in response to the new round of the Opmi kerong outbreak, the restrictions are less stringent, which has helped to rebound in gold sales.

In addition, on Wednesday, January 19, local time, British Prime Minister Johnson announced that the United Kingdom is about to end the "Plan B" plan implemented since December, canceling all epidemic prevention measures including mask injunctions, working from home and vaccine passes, or will take effect next Thursday. The Ministry of Education also removed the requirement for secondary school students to attend classes and wear masks in public places in the guidelines, taking effect immediately. In addition, Johnson also mentioned that the self-isolation measures for new crown cases may also be cancelled at the end of March. Johnson said the COVID-19 data "shows time and time again that the government was right to make this most difficult decision." Scientists believe that the Opmikharon wave is likely to have peaked nationwide. We continue to advise everyone to wear a mask in a closed or crowded environment, but we believe that the British people's judgment will no longer criminalize not wearing a mask. For this decision, all walks of life in the UK have expressed different degrees of concern. The British Teaching Union warned that many school principals in England believe that the spread of the epidemic will cause widespread damage to teaching.

Today's data to pay attention to are the Eurozone December CPI y-o-y, the Eurozone December CPI MN, the number of initial jobless claims in the United States for the week ended January 15, and the total annualized sales of complete houses in the United States in December.

Gold/USD

Gold climbed sharply yesterday, hitting the 1840 mark and refreshing an 8-week high, and the pair is now trading around 1839. In addition to the bearish retracement of gold constitutes a certain support, the weakening of the US dollar index and the rising risk aversion of the market are also important factors supporting the rebound of gold. In addition, gold's involvement in attracting some technical buying after a rapid climb has also exacerbated gold's gains. Focus on the pressure situation around 1850 today, with support below around 1830.

AUD/USD

The Australian dollar oscillated to the upside yesterday, closing slightly higher on the daily line, and now the pair is trading around 0.7230. In addition to the bearish retracement that supports the pair, the suspension of the rally of the US dollar index under the pressure of factors such as the decline in US Treasury yields is the main reason for supporting the rebound of the Australian dollar. In addition, higher prices of commodity crude oil, iron ore, international copper and other commodity currencies also constitute a certain support for the commodity currency Australian dollar. Focus on the pressure situation around 0.7300 today, with support below around 0.7150.

USD/JPY

USD/JPY closed slightly lower yesterday, trading around 114.50. In addition to the fact that profit taking has exerted some pressure on the pair, the decline of the dollar index at a high level under the pressure of multiple bearish factors is also an important factor in the weakening of the pair. In addition, the market's risk aversion has heated up, and the safe-haven currency, the Yen, has gained the favor of some safe-haven funds, which has also put some pressure on the pair. However, the Fed's expectation of a rate hike limits the pair's room for a pullback. Focus on the pressure situation around 115.50 today, with support below around 113.50.

This article originated from the financial world