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Oil Closed The Week Lower While Gold Leapt

On other oil markets, on the Nymex, WTI crude oil dropped 0.30 percent to $52.20, but in January it added 7.6 percent. On Friday, gold increased 0.5 percent, but in January it lost 2.5 percent. With a leap of around 6 percent in two sessions, capital stuck out, with silver metal being the focus of tiny social media investors including Reddit.

But the conversations of traders on Friday, as in previous days, were less about the economic condition or the avalanche of corporate results than about speculation in recent days about a handful of shares threatened by short-sellers, who were blocked by hundreds of thousands of smallholders gathered on the social network Reddit on stock market sites such as WallStreetBets.

Thus, the best-selling short-selling shares in the stock exchange were taken off by these American day traders and thus the hedge funds playing the downturn were ‘squeezed’. Stocks such as GameStop and AMC Entertainment have doubled many times in a few days and have been propelled, at the same pace as heavyweights such as Apple or Tesla, among the most traded stocks on Wall Street. On Thursday, many brokers restricted or even suspended transactions on their websites, including Robinhood (a very popular free app), but also Schwab and TD Ameritrade, in the face of the speculative hysteria. The rage of small carriers has been provoked by these blockages, and the whole of this extraordinary development is now being closely watched by the SEC and even representatives of Congress and the White House.

Brokers partly relaxed their purchasing bans on Friday, leading to a new bullish surge on stocks such as Gamestop (up 67.8%) and AMC (up 53.6 percent). Challenged by margin calls, the Robinhood platform begged its shareholders (investment funds), who promised to pump $1 billion of fresh money into the start-up. This year, Robinhood plans to go public but is now under heightened regulatory pressure and a class action by consumers angered by their accounts being closed.

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