Live Chat

Gold prices are rallying on geopolitical concerns as the dollar

European Stocks Rally While Euro Struggles

European stock markets rallied early Friday, with the major indices posting gains of close to one per cent as we start to see a more mixed outlook for global central banks and the euro and pound touched multi-month lows against the dollar.

Gold prices kept pushing higher even as real yields have jumped – fears about an Iran strike on Israel, or maybe a U.S. plan to raise even more debt for Ukraine. Everything points to the argument I made a year ago:

“...we are about to go into a protracted economic (and maybe real) war, and it will require the mobilisation of the state and people – developed world central banks (Fed, ECB, BoE, BoC, RBA) will act together to orchestrate fiscal spending and suppress yields”.

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Shares Search
Shares
Index
Commodity
Bonds
Crypto
ETFs
Currency

Instrument

Search
Clear input
Occidental
Prosus N.V.
Porsche AG
Hermes
CAT
Thermo Fisher
Nikola Corporation
Tilray
Shell plc (LSE)
Skillz Inc
Iberdrola
DeltaAir
CrowdStrike Holdings
Golar LNG
Applied Materials
Snowflake
Royal Bank Canada
Amazon.com
Spotify
Exxon Mobil
CCB (Asia)
McDonald's
Campari
GameStop
Netflix
ON Semiconductor
Costco
Dave & Buster's
Delivery Hero SE
LUCID
Continental
Zoom Video Communications
Schlumberger
Virgin Galactic
Upwork Inc.
Cameco
JP Morgan
Fuelcell
Rivian Automotive
XPeng Inc
Wal-Mart Stores
Trade Desk
Blackstone
Vodafone
Aptiv PLC
L'Oreal
Target
Rio Tinto
Sartorius AG
British American Tobacco
Qorvo
ASOS
Cisco Systems
Nel ASA
Arista
Airbus
Apple
Pfizer
AMC Entertainment Holdings
ASML
Hubspot
Teladoc
Starbucks
SMCI
Canopy Growth
Wish.com Inc
Lockheed Martin
ProSiebenSat.1
IAG
AbbVie
Marston's
Baidu
Teleperformance
Norwegian Air Shuttle
Airbus Group SE
HSBC HK
Block
Annaly Capital
Abbott
LVMH
American Express
Novavax
GoPro
Siemens
Total
SIG
Pinterest Inc
Taiwan Semi
Etsy
Amgen
SONY
3D Systems
UPS
BlackBerry
Gen Digital Inc
Xiaomi
Quanta Services
Unity Software
NVIDIA
Anglo American
Palantir Technologies Inc
Fresnillo
Deere
Rolls-Royce
Porsche
Uber
Vir Biotechnology
American Airlines
ROBLOX Corp
Macy's
FirstRand
easyJet
DISNEY
Aurora Cannabis Inc
BP
Adidas
Boeing Co
Vonovia
Coca-Cola Co (NYSE)
Home Depot
General Electric
Coinbase Inc
ALIBABA HK
Philip Morris
General Motors
PayPal
UniCredit
II-VI
BASF
Kraft Heinz
Alphabet (Google)
Palo Alto Networks
Plug Power
Li Auto
Oracle
Roku Inc
UiPath Inc
Upstart Holdings Inc
F5 Networks
Infinera
Inditex
ZIM Integrated Shipping Services Ltd
Deutsche Bank
Hammerson
IBM
JD.com
Barrick Gold
Lemonade
MerckCo USA
Infosys
Invesco Mortgage
Comcast
Santander
Accenture
Anheuser-Busch Inbev
Visa
Mastercard
T-Mobile
SAP
Wayfair
Beyond Meat
Kuaishou
CarMax
Tesla
Lyft
Medtronic
Adobe
Morgan Stanley
Workday Inc
Blackrock
Vipshop
Meta (Formerly Facebook)
Linde PLC
Micron
Lululemon
Ceconomy
Chipotle
Gilead
Naspers
Bristol Myers
The Cheesecake Factory
Glencore plc
British American Tobacco
ChargePoint Holdings Inc
Twilio
Intel
Lloyds
CNOOC
Electrolux
Wells Fargo
Sea
PG&E
Fedex
Citigroup
Peloton Interactive Inc.
eBay
Microsoft
JnJ
Bilibili Inc
Trump Media & Technology Group
AIA
Nasdaq
Air France-KLM
Allianz
Lithium Americas Corp
Procter & Gamble
Qualcomm
AMD
New Oriental
MercadoLibre.com
Mondelez
Lumentum Holdings
Two Harbors Investment aration
AstraZeneca
Norwegian Cruise Line
Unilever
GoHealth
PepsiCo
Barclays
PETROCHINA
Goldman Sachs
Eli Lilly
HSBC
Cellnex
Berkshire Hathaway
Jumia Technologies
HDFC Bank
RTX Corp
Bayer
Bank of America
Chevron
ADT
DoorDash
Marriott
Nike
AT&T
GSX Techedu
Robinhood
Telecom Italia
Deliveroo Holdings
TUI
Freeport McMoRan
Toyota
BioNTech
Airbnb Inc
Alibaba
Verizon
Nio
Eni
Ford
Volkswagen
UnitedHealth
Shopify
China Life
Snap
Christian Dior
Conoco Phillips
Lufthansa
Tencent
Moderna Inc
Salesforce.com
Broadcom
Diageo
Toro
Cinemark

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

More Highs for Big Tech

A big pop for technology giants led the Nasdaq Composite to a record level as Wall Street rebounded from its inflation shock.

Apple and Nvidia – the two stocks I mentioned only the other day as showing signs of distress – both rallied 4% to drive the tech sector higher and pull the S&P 500 index out of its funk. The FTSE 100 trades close to 8,000 again and within a whisker of its all-time high. Looking good for that now, I think.

ECB Prepared to Move the Goalposts for Cuts?

Whilst traders have pared bets for the Fed and Bank of England to cut rates, the ECB yesterday stuck to its guns and predicted a quarter-point cut by June, with some even arguing for an immediate cut. Nevertheless, whilst the ECB says it’s not “Fed dependent”, traders did slightly pare bets for a June cut – down from 75% to 70%.

The market is not so convinced that the ECB can completely ignore US inflation. The chances of a Fed cut in June have come down from over 60% a month ago to just 24% today. However, that’s up from 16% in the wake of the US inflation data earlier this week – some over-excitement masked the fact that the Fed may not be as worried about inflation as the market, plus some softer-than-expected PPI inflation data out of the US pushed yields back down.

PPI rose 0.2% month-on-month in March, compared with +0.3% expected. Watch the UoM consumer inflation expectations later, whilst we hear from the Fed’s Bostic and Daly.

ECB communication yesterday was nuanced but definitely signalled a cut in June. Overall, if global central banks are starting to diverge from the Fed this can offer further support to the USD – however this may not fully materialise until we actually get some cuts.

UK Economy Stumbling Forwards

The UK economy grew tepidly in February, with GDP expanding by 0.1%. Sterling remains under the cosh and GBP/USD has hit its lowest level since the Fed’s December pivot.

The euro sank to its weakest since mid-November in anticipation of policy divergence. Meanwhile, the Bernanke review of the Bank of England forecasting is anticipated today. Dot plot for the MPC?

UK Economy Stumbling Forwards

Gold Price Keeps Pushing on Geopolitical Concerns

The gold price has shrugged off everything – watch the geopolitics. Ever since Oct 7th there has been a decoupling from real yields as geopolitical risks rose, and the gold price is showing an inflation-debt-debasement premium as well – as talked about before.

The 10-year TIPS yield has jumped to 1.250%, the dollar index (DXY) is at 105 and its highest since mid-November. All the usual influences don’t seem to matter — is everyone hoarding?

Gold Price Keeps Pushing on Geopolitical Concerns



When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

Oil price jumps after Biden's comments on possible Israeli strikes on Iran

Friday, 4 October 2024

Indices

Oil price surges after Joe Biden’s comments on possible Israeli plans to attack Iran

US dollar sees continued safe haven flows on Middle East conflict concerns

Thursday, 3 October 2024

Indices

US dollar sees continued safe haven bid on Middle East concerns

 Oil prices gain amid muted market impact of Iran’s strike on Israel

Wednesday, 2 October 2024

Indices

Stocks steady, oil prices up on muted market reaction to Iran strike

Nikkei index tumbles by close to 5% on Ichiba win

Monday, 30 September 2024

Indices

Japan’s Nikkei index skids on Ichiba win, China stocks surge

Live Chat