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Published on Thu Feb 11th, 2021

How does the Chinese New Year 2021 Ox Butt the markets

The Chinese zodiac

Also called Sheng Xiao and Shu Xiang is expressed by 12 animal signs in this order: Rat, Ox, Tiger, Rabbit, Dragon, Snake, Horse, Sheep, Monkey, Rooster, Dog, and Pig. Its origin is since the ancient zoolatry forming a history of over 2,000 years, with great importance in the Chinese culture, not only used to represent years in China but those 12 Chinese zodiac animals in a cycle also believed to influence the personalities, career, compatibility, marriage, and fortune of people.

And we guess that it could also influence our trading! Chinese new year and beyond could be important investment opportunities for 2021, broaden the horizons and grow fortunes.

The Year of the Ox, 12 February 2021

Oxen are the hard workers in the background, intelligent and reliable, but never demanding praise. Said the Chineese!

The Ox holds the personality of strength, reliability, fairness, trust, and conscientiousness - all are initiative and epic behaviors that we hope everyone reading this article could acquire this year!

It also brings calm, patience, methodicalness - all are success kees needed by a competent trader too.

China, the largest global commodities manufacturer and consumer closes with a complete standstill during the new year celebration period. This creates significant 

Over the new year period, China, the biggest global manufacturer and consumer of commodities close, and the country comes to a complete standstill. This presents scopes for traders who recognize how to capture them.

Market Volatility

Trading Volume

It drops for 2 weeks to hit its low the day before the Chinese New Year, then it starts to rise again.

Liquidity & Volatility

Liquidity will be creeping on the ground with very high volatility, soon the prices are pushed up forming extra opportunities for CFD traders exploiting large price hikes.

Gold

Price Rise

Gold prices are rising significantly in the lead up to the Chinese New Year as they gift each other huge amounts of gold during this holiday. The world's largest gold producer and consumer, it's China.

Price Drop

In March, directly following the New Year, the naturally cyclical gold prices, start to drop influenced by the lower demand.

Other metals

Silver, Platinum & Palladium

Increasing demands for industries, especially in China takes place in the run-up to Chinese New Year, then drop again after the celebrations.

Copper

Other metals are affected by Chinese New Year too and copper futures is an example that falls by as much as 50% the day after the holiday.

Aluminum, Steel & Nickel

These metals are heavily manufactured and consumed in China, their prices often fall around the beginning of the Chinese New Year.

Oil

Slowing Demand

Demands also slow down once the Chinese go on their New Year breaks although it has seen one bright spot in recent years.

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How does the Chinese New Year 2021 Ox Butt the markets We guess that it could also influence our trading! Chinese new year and beyond could be important investment opportunities for 2021, broaden the horizons and grow fortunes.

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Information, charts or examples contained in this review article are for illustration and educational purposes only. It should not be considered as an advice or endorsement to purchase or sell any security or financial instrument. We do not and cannot give any kind of financial advice. No employee or persons associated with us are registered or authorized to give financial advice. We do not trade on anyone's behalf, and we do not recommend any broker. On certain occasions, we have a material link to the product or service mentioned in the article. This may be in the form of compensation or remuneration.

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