While US markets remain closed today as traders celebrate the thanksgiving holidays, we are seeing a positive performance from European indices across the board as they attempt to return to their recent highs. The German Dax is hovering in the 15880 points area after several major companies in the index reacted favorably to the plans announced by the new coalition and are driving general sentiment higher. Despite the lack of events from the US and limited trading hours, traders will be keeping an eye on ECB meeting minutes as there are expectations that it will announce the winding down of the PEPP program in March 2022 along with clarifying the central bank's outlook moving forward and hint to any upcoming fiscal and monetary policy changes as inflation continue to be a significant issue economy contend with.
Gold attempts to rebound after tumbling below $1800
Despite a solid performance seen from gold for about a week, the precious metal experienced some increased volatility and dropped significantly after the nomination of Jerome Powell as head of the Federal Reserve for a second term by president Biden. While gold continues to be considered a hedge against inflation by many, some have opted to look for alternatives which have also increased pressure on the price as it hovers in a key reaction area of $1790 after dropping around 5% from recent highs. A key thing to keep in mind is that while central banks have played a large role in the performance of this asset, stock markets have experienced a somewhat significant correction and a change in the current trend could have a noticeable effect on precious metal prices.
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