Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
AKCJA
The correction in precious metals continues. Gold fell by over $500 per ounce last week, a decline of over 10% and its third consecutive weekly loss. The precious metal dropped a further 3% this morning to around $4,300 and is now on track to close its ninth consecutive day in the red. Gold-backed ETFs are contributing heavily to the drop after seeing billions of dollars in outflows over the past several weeks. The long gold trade was perhaps somewhat overcrowded leading up to the strikes on Iran, which provided an apt excuse for many to book profits. The psychologically important $5,000 threshold seems further away than ever and as of this morning the precious metal is no longer in the green for the year. The same can be said of silver, which now sits at $65 per ounce after having lost an eye-watering 15% last week. Cryptocurrencies are holding up surprisingly well in comparison, with Bitcoin making marginal gains this morning and pushing over $68,000 per coin.
The dollar has suspended its relentless push higher for the time being, causing the DXY to stabilise around 99.5. A number of Asian economies are beginning to feel the pinch of being cut off from Middle Eastern oil, pressuring their respective currencies. The yen flirted with 160 last week and is on the back foot again this morning, prompting Japanese monetary authorities to signal their readiness to step in to defend their currency should the need arise. Over in South Korea, the won fell to a 17-year low this morning, touching 1,511 per US dollar. Events surrounding Iran are weighing equally heavily on Japanese and Korean stock markets, with the Nikkei 225 falling as much as 5% at one point this morning and the Kospi index once again approaching circuit breaker territory with a 6% drop shortly after the opening bell. US futures are down around half a percent at the time of writing.
The spread between Brent Crude and WTI remains wide open, with the former trading for $112 per barrel and the latter trailing behind at a comparatively modest $98. The difference between the two benchmarks is a useful illustration of the disruption to oil flows in the region, which remain severe. Iraq recently shut down production at all foreign-operated oil fields because no tankers were made available to pick up the precious cargo. Local oil storage has hit maximum capacity and there is simply nowhere left to store what is being extracted out of the ground. As per the latest ultimatum presented to Iran, the regime has around 24 hours left to open the Strait of Hormuz, failing which the US will launch attacks on Iranian power plants and electrical grids. With the deadline fast approaching, oil markets are braced for volatility.
Handel instrumentami pochodnymi oraz produktami lewarowanymi wiąże się z wysokim ryzykiem i może prowadzić do strat przekraczających wartość początkowej inwestycji. Przed rozpoczęciem handlu należy zapoznać się z naszymi Warunkami i Zasadami (T&C) oraz Dokumentem ujawniającym informacje o produkcie (PDS).
OTWÓRZ KONTO