S&P 500 futures are losing ground in premarket trading as traders react to Austria’s decision to impose a full lockdown from Monday.
The number of new coronavirus cases in Europe continues to grow, and it looks that other countries may follow Austria’s example.
Demand for safe-haven assets increased, pushing the U.S. dollar towards yearly highs. Meanwhile, Treasury yields moved lower as bond traders increased purchases of U.S. government bonds.
It remains to be seen whether lower yields will provide any support to stocks today as traders may be willing to take some profits off the table near record highs for S&P 500.
WTI Oil Is Under Strong Pressure
WTI oil found itself under strong pressure and made an attempt to settle below the $76 level as traders rushed out of long positions after Austria announced a full lockdown.
Lockdowns have a negative impact on oil demand, and traders fear that similar measures will be introduced in other European countries. In this scenario, demand will decrease at a time when OPEC+ continues to boost production by 400,000 barrels per day (bpd) each month.
Not surprisingly, oil-related stocks have already found themselves under strong pressure in premarket trading.
Gold Gains Some Ground Despite Strong Dollar
Gold received support from safe-haven buying and moved back above the $1860 level despite strong dollar. The U.S. Dollar Index has recently made an attempt to settle above the resistance at yearly highs near 96.25 but failed to develop sufficient upside momentum and pulled back towards the 96 level.
Currently, gold remains stuck in the range between the support level at $1845 and the resistance level at $1875. In case gold manages to settle above the resistance at $1875, it will gain additional momentum and move closer to the next resistance at $1900 which will be bullish for gold mining stocks.