All Articles Tagged - gold

Weekly Comment – ECB meeting and US CPI data eyed as the Russian invasion unfolds

Posted on March 4, 2022 at 2:05 pm GMT

The Russian invasion of Ukraine continues to drive the risk-off sentiment in global markets. However, during his Congressional testimony, Fed Chair Jerome Powell played down the prospect of a 50 basis points rate hike in March, lifting US equities. In the upcoming week, the European Central Bank monetary policy meeting together with inflation data from the US and China will take centre stage. Highlights: On Thursday, the ECB will conclude its monetary policy meeting as the war in Ukraine elevates energy prices, [..]

US Open Note – Dollar roars and US futures retreat as Russian invasion escalates

Posted on March 4, 2022 at 1:59 pm GMT

Dollar extends gains amid increasing risk aversion; euro bleeds Markets continue to trade on geopolitics today since the cease-fire negotiations between Russia and Ukraine remain unsuccessful, while Western allies are considering even tougher financial sanctions for Russia. Moreover, the Russian attack on the biggest nuclear power plant in Europe in the Ukrainian district Zaporizhia triggered fears over an environmental disaster, causing a broader sell-off in risky assets. Later today, investor sentiment got another hit from media reports stating that Russia [..]

Daily Market Comment – Worries of nuclear accident wound euro, US jobs report next

Posted on March 4, 2022 at 9:39 am GMT

Fire at Ukrainian nuclear power plant gets extinguished Markets terrified initially but most assets retrace losses Euro is the exception – US nonfarm payrolls coming up next Nuclear catastrophe averted Russian forces attacked and captured Europe’s largest nuclear power plant. A nearby building was set ablaze from the intense shelling, sparking fears of a nuclear disaster similar to Chernobyl, until Ukrainian authorities reported the fire had been extinguished and the US Energy Secretary confirmed radiation levels remain normal. The initial [..]

US Open Note – Dollar and US futures head north as Russian invasion lingers

Posted on March 3, 2022 at 2:21 pm GMT

Dollar shines but euro slips on geopolitics The ongoing Russian invasion in Ukraine, alongside the tough Western sanctions and their imminent effects on the global economy continue to be the key drivers for the markets today. Although a new round of negotiations between the two countries is taking place at the moment of writing, there are not any concrete signs of de-escalation so far, thus volatility is expected to remain high. These recent developments in the Ukrainian crisis seem to [..]

US Open Note – Stocks stabilize, dollar’s rally active and yields remain lower

Posted on March 2, 2022 at 3:18 pm GMT

US ADP payroll report, Fed’s Powell, and BoC today’s highlights The greenback continues to hold strong as oil prices rocket far north of the $100 per barrel level, and risk-off signals linger, fuelling questions about the outlook for tightening from the Federal Reserve. The war in Ukraine is clearly one of the clear drivers for hotter inflation from energy pressures as rejected Russian supplies of oil blunt the growth outlook around the world. The US 10-year yields are lower from [..]

Technical Analysis – Gold’s fresh rally takes a breather below 1,950 level

Posted on March 2, 2022 at 9:59 am GMT

Gold is consolidating slightly beneath its latest high of 1,950 after renewed positive traction from its recent 1,891 trough. The soaring simple moving averages (SMAs) are safeguarding the one-month bullish picture in the precious metal. The climbing red Tenkan-sen line looks set to complete a positive overlap of the flattened blue Kijun-sen line, which would indicate that bullish forces are intensifying. That said, an upturn in the blue Kijun-sen line would offer additional credence for positive developments in the commodity. [..]

Daily Market Comment – Oil prices go ballistic as Ukraine crisis deepens

Posted on March 2, 2022 at 9:59 am GMT

Oil prices go parabolic, climb almost 20% this week as sanctions bite Dollar and yen advance, gold shines, yields crumble, stocks retreat Coming up – Ukraine peace talks, Powell testifies, OPEC and BoC meet Energy market in turmoil The war in Ukraine has unleashed havoc on financial markets, with some of the most liquid securities on earth trading like penny stocks lately as nervous traders scramble to either hedge their risk exposure or liquidate assets. Oil prices are the perfect [..]

US Open Note – Ukraine negotiations fail, and Putin intensifies attacks

Posted on March 1, 2022 at 2:18 pm GMT

Risk-off mood returns, US ISM manufacturing ahead It seems the next few weeks will be pivotal for volatility as Russia declared it would continue its attacks until its goals were met. The retreat in US stock futures is signalling a risk-off mood, and the USD/JPY pair is also expressing some risk-off tendencies, slipping to 114.80. That said, the dollar index is holding above the 97.00 mark and should risk appetite continue to wane, it appears the way up for the [..]

Can the metal and mining sector act as an inflation hedge in 2022? – Stock Market News

Posted on March 1, 2022 at 10:50 am GMT

Investors and stock markets are bracing for multiple rate hikes by the Fed in 2022 as an effort to tackle the persistently high inflation in the United States, which reached a four-decade high of 7.5% in January. Although the upcoming monetary tightening is anticipated to reduce inflationary pressures to some degree, supply-side inflation stemming from Covid-19-related disruptions and elevated energy prices could remain high. Therefore, with investors probably continuing to seek stocks with inflation hedging attributes, can the metal and mining sector [..]

US Open Note – Risk-off tone creeps in as sanctions put pressure on Russia

Posted on February 28, 2022 at 3:07 pm GMT

Dollar steadier, Russia feels ‘SWIFT’ thump, growth and inflation risks grow Global economies are being challenged in the first quarter of the year. Markets seem to have been dealt a difficult hand, with countries now juggling multiple constraints as they diverge from the pandemic and strained supply chains. Escalating tensions in Ukraine have added new fuel to the fire. The implications of the ongoing geopolitical tensions have increased risks of energy supply constraints and could keep inflation elevated for longer, [..]

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