Stocks Gain Ground Ahead Of Consumer Sentiment Data

S&P 500 futures are gaining ground in premarket trading ahead of the release of Michigan Consumer Sentiment report for November.

The report is expected to show that Consumer Sentiment improved from 71.7 in October to 72.4 in November and may have a significant impact on the dynamics of the U.S. dollar, which is trading near yearly highs against a broad basket of currencies.

The U.S. Dollar Index has moved from the 94 level to 95.20 in just three trading sessions after inflation reports indicated that prices grew faster than expected in October.

Strong dollar and worries about inflation have put some pressure on stocks in recent trading sessions, but traders looked ready to “buy the dip”.

WTI Tests The $80 Level
WTI oil has recently made an attempt to settle below the $80 level as strong dollar and worries about the rebound of oil demand put pressure on oil markets.

It looks that oil traders are worried about the recent surge of coronavirus in European countries, which may lead to new restrictions and hurt demand for oil.

Energy-related stocks have been mostly range-bound in recent weeks, and oil’s move below the $80 level may trigger a pullback.

Gold Takes A Pause After Strong Move
Gold faced resistance near $1865 and pulled back closer to the $1850 level as traders took some profits off the table after the strong rally.

Gold gained strong upside momentum on inflation worries, and gold mining stocks moved to multi-week highs.

It should be noted that gold has completely ignored the strength of the U.S. dollar, which shows that the current upside trend is strong.

In case gold manages to stay above the $1850 level, it will get to another test of the $1865 level which will be bullish for gold mining stocks.

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