Stock markets brush aside metals madness
|It has been a solid day for equity markets despite the carnage in gold and silver prices, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.
FTSE 100 makes new record high despite metals losses
The FTSE 100 has shrugged off a weak start to the day and the collapse in precious metal prices to post a respectable 90 point gain. AstraZeneca has played its part in a steady move higher throughout the day as the pharma giant completes its move to the NYSE from the Nasdaq, a move which many still think is a precursor to abandoning its London listing altogether. Losses in miners and oil stocks have been contained, not least because of the dip buying going on in gold and silver after the weekend plummet.
VIX reversal bolsters risk appetite
Gold and silver might have entered their own bear market over the last two trading sessions, but we have already seen dip buying at the lows. The fundamentals of the trade have not changed, but now investors need to ask themselves whether they really believed in those fundamentals, or had just been beguiled by one of the most impressive momentum-driven moves of recent years.
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