Gold Hits Record Highs Amid Inflation Fears; US Equities Face Volatility with Tech Sector Declines – Saxo Bank MENA
Commodities
Gold set multiple new records, peaking above $3,055/oz on Mar 19, driven by inflation fears and geopolitical tensions. Copper surged above $5.20/lb on Mar 19, influenced by tariff-driven supply disruptions. Crude fluctuated, impacted by Middle East tensions and sanctions risks, trading near $70/bbl late week.
Equities
- US: US equities faced volatility with tech struggling amid valuation and recession concerns. Notable moves included Tesla dropping -4.8% on Mar 17 and -5.3% on Mar 18, Nvidia down -3.4% on Mar 18, and Boeing rallying +6.8% on Mar 19. FedEx and Nike both fell sharply post-earnings (-6.45% and -5.46%, respectively, Mar 21).
- Asia: Asian markets surged early week on AI optimism, notably Baidu +10% on Mar 17. Later mixed, with profit-taking in tech stocks dragging Hang Seng lower (-2.2% on Mar 21).
Digital Assets
Bitcoin fluctuated around $82,000–$86,944, supported by ETF inflows hitting a six-week high ($274.6M on Mar 17). XRP surged +7.3% on Mar 19 after the SEC ended its lawsuit against Ripple. Crypto stocks showed mixed performance, with Coinbase notably up +4.8% on Mar 19 but retreating later.
Currencies
USD strengthened late in the week ahead of tariff clarity expected on April 2, with EURUSD retreating below 1.0850 on Mar 21. JPY strengthened modestly post-FOMC, with USDJPY trading around 148.25 on Mar 20.
Looking Ahead
Investors face key macro data and earnings:
- Mon: S&P Global Flash U.S. PMI, KB Home and Oklo earnings.
- Tue: Case-Shiller Home Price Index, Consumer Confidence, New Home Sales; GameStop, McCormick earnings.
- Wed: Durable Goods Orders; earnings from Dollar Tree, Chewy, Paychex.
- Thu: GDP (Q4 revision), Jobless Claims, Pending Home Sales; Lululemon earnings.
- Fri: Personal Consumption Expenditures (PCE) Index, Consumer Sentiment; remarks from Fed’s Raphael Bostic.
Markets remain cautious, particularly around inflation, housing data, Fed speeches, and ongoing tariff developments, with investors closely monitoring any shifts in economic indicators that could signal broader economic headwinds or influence central bank policies.
Volatility
VIX volatility spiked notably midweek to 21.70 on Mar 18 ahead of the Fed decision. It eased sharply after Powell’s dovish comments, closing at 19.28 on Mar 21, though short-term uncertainty remains heightened ahead of tariff announcements.
Fixed Income
US Treasury yields softened midweek following the Fed’s dovish signals, with the 10-year yield settling around 4.25% on Mar 21. German Bund yields dropped sharply (-6bps to 2.82% on Mar 17) amid optimism about Germany’s large-scale fiscal stimulus.
Last Updated on 2 days by News Desk 1
