Wall Street maintains the bullish pulse despite the assault on the Capitol

January 07, 2021 12:30

If last year began with warlike tensions between the US and Iran which set the stage for a historically anxious and turbulent year, 2021 is not being left behind, as yesterday's events will go down in history.

Tensions in the US reached new heights with the assault by protesters on the United States Capitol, where at least 4 people have died and there have been 52 arrests. These disturbances led to the deployment of the National Guard in the capital to control the situation.

Despite this situation, it is curious to see that the American stock markets did not show any reaction, since both the Dow Jones index and the S & P500 closed the session with rises of 1.44% and 0.57% respectively, the pre-opening being positive for the moment. And we will see whether or not the markets will respond to the events of the next few weeks.

The movement of the markets during yesterday's session is another example of the de-correlation that currently exists between financial markets and the current social context due to the different liquidity injection measures and aid programs by the different organizations. With an uncontrolled pandemic situation in the United States, the economic problems derived from it, and the sharp division of the population, what does the market need to reflect this situation?

Will gold continue in 2021 with its strong uptrend?

As we well know, we are living through very turbulent and difficult times and gold is the safe-haven asset par excellence, so during the past year we could see how it showed strength during practically the whole year with a strong upward trend that led it to mark highs above $ 2,070 per ounce, where it began a correction in the form of a bearish channel to its 50% Fibonacci retracement level in the zone coinciding with its 200-session average.

Recently, the price has managed to break the bearish channel to the upside, so it will be interesting to see if it will be able to confirm this bullish break with the price pullback and look again for the zone of 2000 dollars per ounce.

Source:daily chart Gold Admiral Markets MT5 platform(from September 15, 2019 to January 7, 2021). Access: January 7, 2021 at 10:00 PM GMT. Please note: Past performance is not a reliable indicator of future results or future performance.

In 2016 it increased 8.55%, in 2017 it increased 13.17%, in 2018 it fell 1.6%, in 2019 it increased 18.31% and 21.86% in 2020, that is to say that in five years it has risen by 69 , 05%.


The data provided provides additional information on all analyzes, estimates, forecasts, forecasts, market reviews, weekly outlooks or other evaluations or similar information (hereinafter "Analysis") published on the Admiral Markets website. Before making any investment decisions, pay close attention to the following:

  1. This is a marketing communication. The content is posted for informational purposes only and should not be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and is not subject to any prohibition on pre-dissemination of investment research.
  2. Each investment decision is made by each client alone, while Admiral Markets UK Ltd (Admiral Markets) will not be liable for any loss or damage arising from such a decision, whether based on content or not.
  3. In order to protect the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for the prevention and management of conflicts of interest.
  4. The analysis is prepared by an independent analyst, Roberto Rojas, SEO implementer (hereinafter "Author") based on personal estimates.
  5. While all reasonable efforts are made to ensure that all sources of content are reliable and that all information is presented, as much as possible, in an understandable, timely, accurate, and complete manner, Admiral Markets does not guarantee accuracy. or integrity of any information contained in the Analysis.
  6. Any past performance or modelling of the financial instruments indicated in the content should not be construed as an express or implied promise, guarantee, or implication of Admiral Markets for any future performance. The value of the financial instrument may rise and fall, and the preservation of the asset's value is not guaranteed.

7. Leveraged products (including contracts for difference) are speculative in nature and may generate profit or loss. Before you start trading, make sure you fully understand the risks.

Admirals An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.