Gold Prices Surge as Middle East Tensions Boost Safe-Haven Demand – APM Capital Market Report – Mark Pussard, Head of Risk
Commodities
Gold Prices jumped 1% as safe-haven demand spurred by an escalation in the Middle East conflict, along with lower US bond yields pushed back prices near last week’s record highs. Gold Futures for December delivery was up 0.82% or 21.75 to $2,681.15 a troy ounce.
Elsewhere in commodities trading, Crude oil for delivery in November rose 3.74% or 2.55 to hit $70.72 a barrel, while the December Brent oil contract rose 3.74% or 2.68 to trade at $74.38 a barrel.
GCC market
Escalating tensions in the Middle East have dampened investor confidence and raised concerns about how riskier assets, including the highly valued U.S. stock market, might respond if the situation worsens.
Cementing its status as a key enabler of the UAE’s non-oil economy, the DFM General Index recorded a 4.1 per cent increase last month, its fourth consecutive monthly gain and the largest monthly gain among the GCC markets in September, to close at 4,503.48 points.
US market
Wall Street’s main indexes slid yesterday as investors turned risk-averse following reports of geopolitical tensions escalating in the Middle East, while also assessing data that pointed to a stable labour market.
At the close in NYSE, the Dow Jones Industrial Average fell 0.41% to 42,157, while the S&P 500 index declined 0.93% to 5,709, and the NASDAQ Composite index lost 1.53% to finish the session at 17,910.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 15.12% to 19.26.
European market
UNITED KINGDOM: The UK blue chip index finished the day positively finishing up 0.48% at 8,277.
EUROPE: Germany stocks were lower after the close on Tuesday, as losses in the Technology, Construction and Transportation & Logistics sectors led shares lower. At the close in Frankfurt, the DAX fell 0.58% to 19,213, while the MDAX index declined 0.23%, and the TecDAX index lost 0.87%. The DAX volatility index, which measures the implied volatility of DAX options, was up 10.37% to 16.50.
In France the CAC 40 fell 1% to finish the day at 7,560.
Asian market
Japan stocks were higher after the close on Tuesday, as gains in the Banking, Chemical, Petroleum & Plastic and Paper & Pulp sectors led shares higher. At the close in Tokyo, the Nikkei 225 added 1.97% to finish at 38,652. Elsewhere, the Shanghai Composite also saw a positive day, finishing higher to close at 3,088.
Forex
The dollar strengthened against the euro and sterling yesterday, with EUR/USD breaking the $1.1100 handle to finish down over 1% to $1.10673. Sterling finished the day down over 1.2% at $1.32801.
Elsewhere, other markets were more subdued with USD/JPY and EUR/GBP remained largely unchanged.
Last Updated on 2 months by News Desk 1
