Daily Summary: new trading week kicks off with modest market pullback

One of the topics of the day was reaching new historical highs in the gold market, right after Friday's record close. Gold rose today nearly to 2150 USD per ounce, but it is currently trading around 2020 USD per ounce, registering over a 2% drop in price.

The rise in gold prices is motivated by an earlier significant drop in yields and a strong correlation with Bitcoin, which also experienced a very large rally.

Bitcoin's price gained over the weekend in anticipation of next year's halving and the possible creation of the first spot Bitcoin ETF fund, as early as January next year.

At the start of the Asian session, Bitcoin's price broke through 40,000 USD and reached close to 42,000 USD today.

There was a significant reduction in commodity prices today, which can be blamed on the strengthening of the American dollar. The EURUSD pair fell today to around 1.0800, at one point losing close to 0.8%. Scandinavian currencies, as well as the Polish PLN, fared the worst against the dollar.

The dollar could have gained following Powell's comments last Friday, where he stated that he does not see prospects for lowering interest rates in the near future.

Natural gas lost significantly due to higher than usual temperatures. Today's gas price drops were close to 4%.

For most of the day, crude oil also lost, but the Saudi Arabian oil minister indicated that voluntary production cuts might be extended past Q1 2024, which caused a significant rebound in prices at the end of the session.

This week we expect a lot of macroeconomic publications, including final PMI indices and the ISM index for services from the USA. The mid-week event will be the interest rate decisions by the NBP and BoC.

At the end of the week, we will learn data from the American job market.

Today, we also observed noticeable declines on Wall Street. The Nasdaq lost over 1%, while the S&P 500 fell by close to 0.6%.