Ringgit hits five-year high against US dollar in holiday trade
The Malaysian ringgit extended its rally, reaching a five-year high against the US dollar, trading in a narrow range of RM4.04-RM4.05.
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Abstract:Global market mood is also boosted by China's somewhat slower-than-expected inflation statistics and UK authorities working on a reversal of UK Prime Minister Truss' tax-cut proposal.
What Caused the Market's Surprising Intraday Reversal? As previously said, market sentiment / posture was too negative / bearish. As a result, any comeback results in significant short covering/put selling.
And real-world inflation is way worse, probably at least double the intentionally-lowballed CPI. What kind of traders see red-hot inflation data and experience even faster-rising prices in their own lives, then think they should dump gold? Those infuriating, hyper-leveraged, ultra-myopic gold futures speculators! While they have managed to temporarily distort gold prices this year, they will be wiped out as it quickly normalizes.

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The Malaysian ringgit extended its rally, reaching a five-year high against the US dollar, trading in a narrow range of RM4.04-RM4.05.

Gold reached its latest record high during quiet trade on Monday. The question for traders now is whether it can sustain momentum into the year end with depleting volumes.

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