There isn’t much optimism in stock markets this afternoon, but gold is having a better day of it, says Chris Beauchamp, chief market analyst at online trading platform IG.

Stocks struggle to hold their ground

“While the banking crisis seems to have subsided, stocks have been unable to find a reason to push higher this afternoon. The return of recession fears further dims the appeal of equities, and with tech stocks down sharply this afternoon it looks like there isn’t much chance of further upside for now.”

Gold stages a recovery

“But those same recession fears, plus the weaker dollar, have provided a space for gold to rally, reversing some of its losses. The market continues to think the Fed is closer to capitulating on rate hikes than it was a month ago, providing a reason for gold to make another push at breaking $2000.”

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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