Gold Hits Record High as Dollar Weakens; Oil Prices Steady Amid US Disruptions – APM Capital Market Report

Commodities

Gold prices charged to a record high on Monday as a weaker dollar and the prospects of aggressive U.S. monetary policy easing boosted non-yielding bullion’s appeal. Spot gold was up 0.1% at $2,579.09 an ounce after a record peak of $2,589.59.

Oil prices consolidated recent gains on Monday as ongoing disruption to US Gulf oil infrastructure balanced persistent demand concerns after a fresh round of Chinese data while investors await news on US interest rates this week.

Brent crude futures finished up $1.14 to $72.85 per barrel, with WTI US crude futures were up $1.44 to finish the day at $70.09.

US market

Stocks closed mixed on Monday as traders and investors prepared for the start of the Federal Reserve’s highly anticipated policy meeting, during which central bankers are expected to cut rates for the first time since 2020. Meanwhile, the Dow Jones Industrial Average rose to a new all-time high.

The S&P 500 added 0.13%, ending at 5,633.09. The 30-stock Dow advanced 228.30 points, or 0.55% ending at 41,622.08, notching a record close. Meanwhile, the tech-heavy Nasdaq Composite shed 0.52%, falling to 17,592.13. Benchmark 10-year yields shrank for a second straight session, shedding 3.1 basis points to 3.618%, from 3.649% late on Friday.

European market

London’s benchmark stock indexes were little changed on Monday, although there were gains in automobile and parts shares, while investors focused on a week of key central bank interest rate decisions.

The benchmark FTSE 100 was up just 5 points to 8,278, while the mid-cap FTSE 250 inched 0.2% higher to 20,930. Both indexes marked gains for the third consecutive session. At the close in Frankfurt, the DAX lost 0.4% to finish at 18,633, while in France the CAC-40 also lost ground, finishing down 0.2% at 7,449.

Asian market

Asian stocks ended mixed on Monday in thin holiday trade as a slew of Chinese data disappointed and caution prevailed ahead of the Fed, BoJ, and BoE policy meetings this week, with central banks in Japan and the U.K. both expected to stand pat on rates.

No trading in the Nikkei due to a national holiday, but the Hang Seng index improved 53.03 points or 0.31% to finish at the daily high of 17,422.12 after moving as low as 17,177.08. In Australia, the benchmark S&P/ASX 200 rose 0.27 percent to 8,121.60 while the broader All Ordinaries index finished 0.21 percent higher at 8,341.10.

Forex

The U.S. dollar fell to a more than one-year low versus the yen on Monday, as expectations increased that the Federal Reserve could deliver a supersized cut to interest rates later this week.

The dollar traded as low as 139.58 yen in Asia hours which was the lowest since July 2023. It was last down 0.10% at 140.690 yen. The dollar index, which measures the currency against six others including the euro, yen, and pound, was down 0.29% to 100.73. Sterling rose 0.64% to $1.3206. The euro was up 0.42% at $1.1123.

Last Updated on 4 months by News Desk 1