S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
ING’s Warren Patterson and Ewa Manthey report that Gold has come under pressure as higher Oil prices stoke inflation concerns and push yields and the US Dollar higher. They note that safe-haven demand has been limited despite geopolitical risks, with recent gains driven mainly by dip-buying and short covering. The analysts see $4,000/oz as a key near-term support level.
Higher yields and Dollar weigh on bullion
“Gold fell as escalating tensions in the Middle East pushed energy prices higher, raising concerns that inflation could remain elevated and keep monetary policy restrictive for longer.”
“Despite ongoing geopolitical risks, gold has struggled to attract meaningful safe-haven demand since the conflict began. Instead, markets have focused on the inflationary implications of higher oil prices and the prospect of higher-for-longer interest rates.”
“Brent crude climbed back above $100/bbl, lifting Treasury yields and the US dollar and weighing on non-yielding assets like gold. Recent strength in bullion appears driven largely by dip-buying and short covering.”
“This follows the sharp correction from record highs earlier this year. The rebound has since lost momentum.”
“Gold is hovering around the key $4,000/oz support level. However, elevated oil prices and rising yields are likely to cap any recovery, leaving $4,000/oz as the key near-term level to watch.”
