Gold prices continue to hover around the $4,400 an ounce mark, and despite the correction, Chinese Central Bank continued to buy the yellow metal for the 22nd month in a row, increasing its Gold reserves by 6,50,000 ounces in August, according to official data. 3 Min Read
Futures on Wall Street resumed trading after the Labor Day holiday on a negative note as markets need to digest cues from over the weekend and from Monday, which saw further reported attacks in West Asia. The Dow futures are down over 300 points, while those on the S&P 500 and the Nasdaq are down 20 points each. Tech stocks led the outperformance in Asia on Monday, which could possibly lend some support to the tech-heavy indices. US markets had ended on a negative note on Friday after the better-than-expected jobs report for August, which led to the Dow Jones ending 270 points lower, while the S&P 500 and Nasdaq had ended near the flat line. Crude oil prices continue to remain at elevated levels with Brent crude nearing the mark of $100 for the third time this year, despite Iran suggesting that a deal with Oman to manage the Strait of Hormuz is in its final stages. Multiple media reports from the Financial Times and Bloomberg also suggest that Saudi Aramco’s facilities in Jazan are under attack yet again, although there is no independent confirmation of the same, nor is there any potential estimate of the damage caused or who is behind the attack.
Goldman Sachs warned on Monday that crude oil prices could head back to the $120 a barrel mark if shipping attacks in the Strait of Hormuz broaden and intensify. In fact, hedge funds have turned the most bullish on Brent crude since May, while their net long positions on the US crude variant (WTI) are the highest since June. The US 10-year bond yield also remains near the 4.8% mark as cash market trading was shut on Monday due to the holiday. Societe Generale has warned that the 10-year reaching levels of 5.5% would break equity investors and lead to a negative reaction in the markets. A similar warning was issued by JPMorgan and Barclays earlier, but that was at the yields touching the 5% mark.
Gold prices continue to hover around the $4,400 an ounce mark, and despite the correction, Chinese Central Bank continued to buy the yellow metal for the 22nd month in a row, increasing its Gold reserves by 6,50,000 ounces in August, according to official data. No significant events are lined up for the rest of the week until Thursday, when the Producer Price Inflation data is released and on Friday, when the Consumer Price Inflation print is put out, the last one before the Fed’s interest rate decision next week. Home Market News Dow futures fall over 300 points after extended weekend as oil prices rise on more attacks
