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Market News [Market Morning] Sanctions on Russia are increased again, gold ignores the strong dollar and stands at the $1940 mark

[Market Morning] Sanctions on Russia are increased again, gold ignores the strong dollar and stands at the $1940 mark

The U.S. dollar crossed the $100 mark for the first time in nearly two years. Gold closed at $1,947.35, as the Russian-Ukrainian war and accelerated global inflation spurred the inflow of funds into safe-haven assets. U.S. oil rose nearly 2 percent.

TOPONE Markets Analyst
2022-04-11
559

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Gold rose sharply during the U.S. session last Friday, reaching a maximum of $1,948, closing up 0.73%; silver closed up 0.12% at $24.75.


Comments: Gold closed at $1,947.35 on Friday, closing at the highest level in nearly two weeks, up 1.16% this week; traders temporarily ignored conventional negative factors such as rising U.S. Treasury yields and a stronger dollar. A stronger U.S. dollar could be bad for dollar-denominated commodities like gold, which makes gold more expensive for users of other currencies.


Suggestion: long spot gold at 1945.33, target point at 1969.50.


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The U.S. dollar remained at a high level, breaking through the 100 mark for a time but failing to stand firm here, closing up 0.082% at 99.86; the 10-year U.S. Treasury bond yield fluctuated higher, standing at 2.7%.


Comments: The U.S. dollar posted its biggest weekly percentage gain in a month on Friday, supported by expectations that the Federal Reserve could tighten monetary policy further to curb soaring inflation. The index also rose to 100 for the first time in nearly two years. The dollar briefly rose to 100.19, its highest level since May 2020. A hawkish message from the Federal Reserve on quantitative tightening, the risk of a new round of sanctions in Europe and a shift in opinion polls in favor of far-right candidate Marine Le Pen ahead of the French presidential election weighed on risk sentiment, especially in Europe.


Suggestions: the euro against the dollar is short at 1.08860, and the target point is 1.07300.


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Crude oil edged higher on Friday at $98.6 a barrel; it fell 1% for the week, its second straight weekly decline. Brent crude closed up 0.91% at $104.54 a barrel.


Comments: Oil prices fell for the second week in a row after countries announced plans to release strategic oil reserves; for several weeks, the benchmark crude oil has been in the most volatile state since June 2020. Members of the International Energy Agency (IEA) will release 60 million barrels of oil reserves over the next six months, and the United States will also release 60 million barrels of oil, as part of the release plan of the 180 million barrels of oil the United States announced in March .


Suggestions: US crude oil is long at 96.550, and the target point is 104.460.


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In the stock market, the three major U.S. stock indexes were mixed. The Dow closed up about 140 points at 34721.12 points; the S&P 500 closed down 0.27% at 4488.28 points; the Nasdaq closed down 1.34% at 13711 points. Oil and gas stocks, silver, and gold stocks performed well, with sectors such as solar energy, hydrogen energy, and semiconductors among the top losers.


Comments: U.S. stocks Dow Jones Industrial Average closed higher on Friday, S&P 500 closed lower as battered bank stocks rose as investors grappled with how best to deal with a potential economic downturn as the Federal Reserve takes aggressive steps to fight inflation . The benchmark 10-year U.S. Treasury yield hit a three-year high of 2.73 percent, helping to lift the S&P bank index up 1.18 percent after hitting a 13-month low on Thursday. The banking index has fallen 10.8% so far this year.


Operational suggestion: the US S&P 500 index is short at 4758.60, the target point is 4265.90


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