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.”
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