Share:

Gains in equities reversed on Thursday, but industrial metals traded south, and crude oil cheapened despite a tense geopolitical environment, as the worries that such a spike in energy and commodity prices would certainly curb the economic growth and slow the global demand took over the worries of a tighter supply.

The central banks are increasingly concerned about inflation, and the major ones start giving out signals that they won’t let inflation run too hot, even if it means a slower growth. Christine Lagarde announced on Thursday that the ECB is ready to take ‘whatever action is needed to pursue price stability and to safeguard financial stability’ in Europe.

Inflation in the US advanced to 7.9% in February as expected, and that number doesn’t even take into account the latest surge in energy and commodity prices due to the Ukrainian war.

In commodities, the upside potential in gold is more than just a safe haven hedge, as the rising geopolitical tensions and the latest sanctions imposed on the Russian central bank will bring the central banks around the world to reconsider their FX holdings, and start shifting towards a nationless gold.

The price of an ounce eased below the $2000 mark, yet the price pullbacks could be seen as interesting buying opportunities for those who bet that it’s time for gold to shine again.

Inequities, the high market volatility and limited visibility makes it hard to give a clear prediction yet the Chinese stocks continue suffering badly, as the prospects are getting worse by the day.

 

Share: Feed news

This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

EUR/USD consolidates recovery above 1.0650

EUR/USD consolidates recovery above 1.0650

EUR/USD extended the recovery from intraday monthly lows to the 1.0670 zone. It is holding firm above 1.0650 after the US Dollar lost momentum during the Asian session, primarily due to a retreat in US yields.

EUR/USD News

GBP/USD trims losses and rises to 1.2300

GBP/USD trims losses and rises to 1.2300

Boosted by a weaker US Dollar, the GBP/USD rebounded from six-month lows near 1.2230 and rose to the 1.2300 area. However, the Pound remains among the worst performers following the surprise dovish stance from the Bank of England.

GBP/USD News

Gold trims weekly gains, trades around $1,920 Premium

Gold trims weekly gains, trades around $1,920

XAU/USD extended its weekly decline to $1,913.91 as the US Dollar kept marching higher following the Federal Reserve (Fed) decision to keep rates unchanged, but remark rates will remain higher for longer. Also, the Fed left the door open for one more rate hike this year. Chair Jerome Powell said the focus is on a soft landing, suggesting they are still struggling to avoid a recession.

Gold News

Tether increased its secured loans in Q2 despite commitment to reduce lending

Tether increased its secured loans in Q2 despite commitment to reduce lending

Tether Holdings has resumed the lending of its stablecoins in the form of secured loans to clients after announcing that it is set to wind down this practice less than a year ago. 

Read more

Fed Dot Plot puts more pressure on DJIA

Fed Dot Plot puts more pressure on DJIA

The Dow Jones Industrial Average (DJIA) has pulled back 0.51% so far this week, losing most of the ground after the Federal Reserve press conference on Wednesday. The US central bank once again paused interest rates but raised the specter of another hike before next year.

Read more

Majors

Cryptocurrencies

Signatures