GOLD
After closing Thursday’s session in the red, gold prices are up this morning, closing in on the two-week maximum touched during the previous session. The price of the precious metal gained more than 4% since hitting a multi-month low earlier in October, with the gains resulting from declining bond yields as investors increased bets on the end of the Federal Reserve’s hiking cycle. Growing tensions in the Middle East are also driving greater demand for bullion as investors begin to price in the disruptive impact that an escalation in the conflict between Israel and Hamas may have in the financial markets.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
Share markets drifted lower on Friday, extending losses registered by Asian stocks, as geopolitical risks weigh on market sentiment ahead of a busy day on the corporate front.
Risk appetite decreased for the week's last trading session as investors feared a military escalation in the Middle East after Israel seemed to brace for a ground invasion in Gaza. Furthermore, the new batch of poor economic data (CPI, PPI) from China is also adding pressure to market sentiment, while investors and analysts are bracing for a hectic day on the corporate front, waiting for Q3 results from the US financial sector's big names such as BlackRock, Citigroup Inc, JPMorgan Chase and Wells Fargo & Co.
With such uncertain circumstances everywhere, it is no surprise to see investors seeking havens such as gold, silver or even treasuries.
The STOXX-50 index pulled back below the 4,200.0pts level, led lower by most sectors despite strong performances registered by utility and energy shares.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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