The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to reduce risk in large cap stocks. Among the index's contributors, Tencent was a major drag, with its shares falling by around 2.3%, putting pressure on the technology sector, which has recently been a driving force behind market gains. Weakness in large cap companies like this typically quickly impacts sentiment due to their significant weighting in...
Gold prices are holding steady today after rising for three consecutive days, supported by expectations of further monetary easing in the United States. Bullion is trading slightly around $4,280 per ounce, after gaining 1.2% in the previous session. The Fed recently cut interest rates and opened up the possibility of additional cuts next year, while the swaps market is even betting on two cuts by 2026, although the central bank has only signaled one. This low interest rate environment is a significant factor in reviving interest in the precious metal. The supporting factors for gold don't...
Silver climbed above $61 per ounce, extending a record rally as markets digested the Fed's 25 basis point cut and parsed Chair Powell's remarks which markets read as relatively dovish even as committee guidance remained cautious. The cut itself was largely priced in, but Powell's comments and a softer dollar lowered the opportunity cost of holding metal. At the same time the physical market has tightened materially which amplifies the policy impulse. ETF inflows and spot buying have surged this year and funds added large tonnes last week, while official and retail demand in Asia and India...
Gold prices surged tonight due to a combination of dovish sentiment from the Fed and market concerns about the future economic outlook. Following the interest rate cut and signals that the Fed is no longer aggressive about raising interest rates, US bond yields tended to fall, lowering the opportunity cost of holding gold. At the same time, the US dollar is less strong than before, making the dollar-denominated precious metal feel cheaper to global buyers. The result: an influx of buying into gold, pushing prices through key psychological levels in the evening session. In addition to...
US West Texas Intermediate (WTI) crude oil was trading around $57.70 at the time of writing on Thursday, down 1.80% on the day. Crude oil remained under pressure as signs of progress emerged in negotiations aimed at ending the conflict between Russia and Ukraine, a development that reduced the risk premium previously embedded in oil prices. US President Donald Trump reportedly told Ukrainian President Volodymyr Zelensky that he had until Christmas to accept a proposal that could end the war, according to the Telegraph. Meanwhile, Zelensky confirmed that he was finalizing a revised peace...
Gold prices fell slightly on Thursday (December 11th), as traders weighed the US Federal Reserve's split vote on a quarter-percentage-point interest rate cut, while silver rose to a new record high. Spot gold fell 0.2% to $4,220.09 an ounce, as of 0947 GMT. US gold futures for February delivery rose 0.5% to $4,247.50 an ounce. "It's just overpositioning (in gold) in anticipation of a rate cut, which did happen, and so you're seeing some selling pressure," said independent analyst Ross Norman, adding that gold's fundamentals remain intact. The Fed cut interest rates by a quarter-percentage...