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Gold returns to $2000 per oz

"It is the job of the market to turn the base material of our emotions into gold." - Andrei Codrescu.

 

 

HEADLINES

  • Euro slides as war in Ukraine stokes inflationary shock
  • Australia, NZ dollars swept up with commodities, euro rout
  • Oil spikes to 2008 highs as U.S., Europe mull Russian oil import ban, Iran delay
  • Palladium scales record high, gold hits $2,000 on Russia-Ukraine war
  • Japan's Nikkei plunges to 15-month low
  • GOLD Short Term: Upside favored

 

 

FOREX

 

 

Euro slides as war in Ukraine stokes inflationary shock

 

 

The euro tumbled to a fresh 22-month low on the dollar and hit multi-year troughs on the yen, Swiss franc and sterling as war in Ukraine drove up commodity prices and stoked fears of a stagflationary shock that would hurt Europe most of all.

The common currency dropped as much as 0.6% to $1.0864 in early Asia trade, its lowest since May 2020, opening the way to its 2020 trough around $1.0636.

It fell below one Swiss franc, hitting 0.9982, for the first time since the Swiss quit their euro peg in 2015.

 

 

Australia, NZ dollars swept up with commodities, euro rout

 

 

The Australian and New Zealand dollars were both at four-month highs on Monday courtesy of a massive rally in commodity prices and a slump in the euro to its lowest since 2017. With met and thermal coal, LNG/natural gas and aluminium all at record highs, copper closing above $10,500 for the second time ever plus iron ore up 14% last week, the commodity complex remains a huge source of support for the A$.

 

 

COMMODITIES

 

 

Oil spikes to 2008 highs as U.S., Europe mull Russian oil import ban, Iran delay

 

 

Oil prices soared more than 6%, touching their highest since 2008 on Monday after the United States and European allies mull a Russian oil import ban while delays in the potential return of Iranian crude to global markets fuelled tight supply fears.

Brent crude futures rose $8.46, or 7.2%, to $126.57 a barrel by 0128 GMT, while U.S. West Texas Intermediate (WTI) crude rose $7.65, or 6.6%, to $123.33.

 

 

Palladium scales record high, gold hits $2,000 on Russia-Ukraine war

 

 

 

Palladium jumped to a record high on Monday, while gold hit the key level of $2,000 per ounce, as concerns over Russia-Ukraine conflict pushed investors towards safe-haven assets. 

Fighting stopped about 200,000 people from evacuating the besieged Ukrainian city of Mariupol for a second day in a row on Sunday, as Russian President Vladimir Putin vowed to press ahead with his invasion unless Kyiv surrendered.

 

 

 

STOCKS

 

 

 

Japan's Nikkei plunges to 15-month low

Japan's Nikkei share average plunged more than 3% to a fresh 15-month low on Monday, as the war in Ukraine showed no signs of abating, pushing up oil and other commodity prices and stoking fears of a stagflationary shock to the global economy.

The Nikkei had fallen 3.15% to 25,166.23 by the midday break. Earlier in the session, it hit its lowest since November 2020 at 25,006.26, threatening the psychological boundary of 25,0000.

 

 

CHART

 

 

 

GOLD Short Term: Upside favored

 

Technical View: Long position above 1940. Target 1980. Conversely, break below 1940, to open 1930.

Comments: The pair breaks above the resistance.

---- CHART IMAGE --- 

Source: Trading Central
 

CALENDAR

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar


Footnotes
https://www.fxstreet.com/economic-calendar
https://www.reuters.com/business/euro-slides-war-ukraine-stokes-inflationary-shock-2022-03-07/
https://www.reuters.com/markets/commodities/australia-nz-dollars-swept-up-with-commodities-euro-rout-2022-03-07/
https://www.reuters.com/business/energy/oil-spikes-2008-highs-us-europe-mull-russian-oil-import-ban-iran-delay-2022-03-07/
https://www.reuters.com/markets/europe/palladium-scales-record-high-gold-hits-2000-russia-ukraine-war-2022-03-07/
https://www.reuters.com/markets/europe/japans-nikkei-plunges-15-month-low-oil-surge-ukraine-war-weigh-2022-03-07/

 

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