S&P 500 futures are gaining ground in premarket trading as traders believe that Fed will not announce the timing of tapering during the economic symposium which will take place on Thursday and Friday. The yield of 10-year Treasuries stays near 1.25%, and the bond market is not volatile at the start of this week.
Today, traders will have a chance to take a look at flash readings of PMI reports for August. Analysts expect that Manufacturing PMI will decline from 63.4 in July to 62.5 in August while Services PMI will decrease from 59.9 to 59.5.
Traders will also pay attention to Existing Home Sales report which is projected to show that Existing Home Sales declined by 0.7% month-over-month in July.
WTI Oil Rebounds As China Reports No New Local Coronavirus Cases
WTI oil failed to settle below the support level at $62 and moved back to the $64 level as traders rushed to purchase oil after China reported no new local COVID-19 cases.
This is a major positive catalyst for the oil market as traders have started to bet that China would be forced to introduce additional virus containment measures which would hurt demand for oil.
In this light, oil-related stocks will have a good chance to move away from multi-month lows and gain solid upside momentum at the beginning of the week.
Gold Moves Closer To The $1800 Level As Dollar Retreats
The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, failed to settle above the resistance level at 93.65 and declined towards the support at 93.10.
Weak dollar provided significant support to precious metals, and gold moved closer to the important resistance level at $1800. If gold manages to settle above this level, it will have a good chance to develop additional upside momentum and get to the test of the next resistance at $1830.
Most likely, gold mining stocks will enjoy a strong start of today’s trading session and will have a decent chance to rebound from recent lows.