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Gold hits $1900, oil drops

HEADLINES

 

 

  • Yen, Swiss franc advance on safe-haven bids as Russia-Ukraine tension rises
  • Sterling rises to two-week high against euro
  • Gold jumps, stocks slide on Ukraine tensions mount
  • Oil headed for weekly fall, prospect of Iran deal stokes fears of extra supply
  • Stocks slide as heightened Ukraine tensions weigh
  • XAU/USD to set a floor amid a wide variety of risks – HSBC

 

 

FOREX

 

 

Yen, Swiss franc advance on safe-haven bids as Russia-Ukraine tension rises

 

 

The safe-haven Japanese yen and Swiss franc climbed to two-week peaks against the U.S. dollar on Thursday, on worries about escalating Russia-Ukraine tensions that could have economic repercussions worldwide.

In afternoon trading, the dollar slid to 114.845 yen , the lowest since early February. It was last down 0.4% at 114.93 yen.

Against the Swiss currency, the greenback fell to 0.9189 francs , the weakest since Feb. 3. The dollar last changed hands at 0.9202 francs, down 0.2%.

 

 

Sterling rises to two-week high against euro

 

 

Sterling strengthened against the euro and the dollar on Thursday as expectations of a rate hike by the Bank of England (BoE) continued to support the pound, while the market was still jittery about the threat of Russia invading Ukraine.

Against the single currency, sterling rose 0.35% to 83.43 pence at 1550 GMT, after touching its highest level since Feb 3.

 

 

COMMODITIES

 

 

Gold jumps, stocks slide on Ukraine tensions mount

 

 

Gold prices jumped to an eight-month high and safe-haven debt rose on Thursday after U.S. President Joe Biden said there was every indication Russia planned to attack Ukraine, while Moscow accused Washington of ignoring its security demands.

A gauge of global equities fell more than 1% despite strong corporate earnings in Europe as the Ukraine standoff deepened. Russian-backed separatists and Ukrainian forces accused each other of firing shells across a cease-fire line and Britain, as well as the United States, said Russia sought to fabricate a pretext to invade.

 

 

Oil headed for weekly fall, prospect of Iran deal stokes fears of extra supply

 

 

Oil prices extended losses on Friday, and were headed for a weekly fall, as the prospect of extra supply from Iran returning to the market outweighed fears of a possible supply disruption arising from a Russian invasion of Ukraine.

Brent crude futures fell 47 cents, or 0.5%, to $92.50 a barrel at 0410 GMT, extending a 1.9% drop from the previous session.

U.S. West Texas Intermediate (WTI) crude futures shed 62 cents, or 0.7%, to $91.14 a barrel, after sliding 2% in the previous session.

 

 

STOCKS

 

 

Stocks slide as heightened Ukraine tensions weigh

 

 

U.S. stocks slid on Thursday, with the S&P 500 marking its biggest daily percentage drop in two weeks, as investors shifted to defensive sectors and safe havens such as bonds and gold as geopolitical tensions between Washington and Russia over Ukraine flared.

After Ukrainian forces and pro-Moscow rebels traded fire in eastern Ukraine, U.S. President Joe Biden said there was every indication Russia was planning to invade in the next few days and was preparing a pretext to justify it.

 

 

ANALYSIS

 

 

XAU/USD to set a floor amid a wide variety of risks – HSBC

 

 

“Real rates will remain negative and a possible rise in trade and geopolitical risks could help gold. Financial market volatility and COVID-19 uncertainties could also trigger safe-haven demand for gold.”

“A longer-term source of gold demand could come from central banks, which are expected to accumulate more gold reserves, amid portfolio diversification and risk management.”

 

 

CHART

 

 

DOW JONES Short Term: Downside favored

 

 

Technical View: Short position below 35330. Target 33700. Conversely, break above 35330, to open 35870.

Comments: The pair remains under pressure. Further weakness favored.

Source: Trading Central

 


 

CALENDAR

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar


SOURCE

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/gold-price-forecast-xau-usd-to-set-a-floor-amid-a-wide-variety-of-risks-hsbc-202202171318
https://www.reuters.com/business/energy/oil-falls-prospect-iran-oil-sanctions-easing-2022-02-18/
https://www.reuters.com/business/futures-slip-heightening-ukraine-tensions-2022-02-17/
https://www.reuters.com/business/ukraine-stand-off-keeps-euro-pinned-2022-02-17/
https://www.reuters.com/markets/europe/global-markets-wrapup-1-2022-02-17/
https://www.reuters.com/business/finance/boe-rate-hike-bets-lift-sterling-ukraine-jitters-damp-risk-appeal-2022-02-17/