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%.

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