Tech on the up as precious metals retreat

Chris Beauchamp IG

The tech trade appears to be reviving, which is more than can be said for gold, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Stock markets grind back into action

It has been a lugubrious start to the week for stock markets, particularly in the US and the UK, but things have begun to liven up, particularly for last week’s also-rans the Nasdaq and the Nikkei 225. Jitters about tech and normal rotation action within sectors took the wind out the rally for both indices, but they are leading the way once again in afternoon trading, an indication that the rally might be poised for another leg higher.

Dollar recovery hits precious metals

Thursday’s payrolls and a long weekend meant that the dollar was a prime target for profit taking, but the greenback has clawed its way higher since then, leaving gold and silver perfectly poised for a new leg lower. Inflation fears might be receding, but the dollar’s resurgence has effectively nullified that advantage for gold and silver. Their best hope now is that Warsh can tone down the rhetoric as CPI data comes through next week.

Author

Chris Beauchamp

Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.

GBP/USD dips below 1.3350 with bullish momentum losing steam

The British Pound ticks lower against the US Dollar Monday, attempting to close a seven-day rally, as tensions rise again in the Strait of Hormuz, one of the critical points in the peace process between Washington and Tehran. The GBP/USD pair trades near 1.3340 at the time of writing, down from 1.3387 highs last week, although it maintains a near-term bullish trend intact.

EUR/USD trims losses, back to 1.1430

EUR/USD remains under pressure on Monday, although it now manages to trim its earlier losses and return to the 1.1430 zone, down marginally for the day. The pair’s mild pullback comes on the back of modest gains in the US Dollar in quite an apathetic start to the week.

Gold meets resistance around $4,200

Gold comes under fresh downside pressure on Monday, reversing three daily upticks in a row and meeting some initial resistance around the $4,200 mark per troy ounce. Safe-haven demand has shifted toward the US Dollar as renewed tensions surrounding the Strait of Hormuz weigh on market sentiment, limiting the precious metal's upside.

Crypto Today: Bitcoin, Ethereum, XRP pull back amid persistent ETF outflows

The cryptocurrency market is experiencing widespread weakness on Monday, with Bitcoin (BTC) sliding under the $63,000 mark amid ongoing risk aversion.

The US Dollar just beat the Swiss Franc at its own safe-haven game

As the king among safe havens, the Swiss Franc is supposed to benefit from geopolitical shocks such as the Iran war. This time, it didn’t. The Swissie is nearly 6% below January’s peak against the USD after a sharp decline that came along with the war in Iran and the closure of the Strait of Hormuz.

Kevin Warsh offers no policy clues: Why markets still got their answer

Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.