Gold Continues to Shatter Records and Reaches New Highs.. Will the Uptrend Continue?

Gold prices continued their record-breaking streak during trading today, Wednesday, as inflation concerns boosted demand for the bullion as a hedge, with traders ignoring doubts about an imminent US rate cut and rising Treasury yields.

Federal Reserve policymakers said on Tuesday they believe it would be “reasonable” to cut US interest rates three times this year, even as stronger recent economic data has raised investor doubts about the rate cut.

Data this week showed the US manufacturing sector unexpectedly rebounded, with raw material prices rising, raising concerns about a possible return of inflation.

Gold, which is used as a hedge against inflation and a safe haven in times of political and economic uncertainty, has gained more than 10.8 percent so far this year and is on track for its seventh straight day of gains.

Gold and the Dollar Now

Gold futures are now up 0.34% to $2290 an ounce. Spot gold is down about 0.5% to $2270 an ounce. It hit a record high of $2288.09 earlier in the session. The bullion has hit record highs every day since Thursday. On the other hand, the dollar index is flat at 104.535 points.

Other Metals

Silver rose 1% to $26.36 an ounce, platinum gained 0.9% to $926.80, and palladium rose 0.8% to $1,011.62.

Sharp Drop in Tesla Shares After This Data.. Tesla’s 2024 Outlook

Tesla (TSLA) stock continued its recent decline on Tuesday after the electric vehicle (EV) company released its production and delivery report for the first quarter of 2024. Here’s what investors need to know:

The TSLA report revealed an 8.5% decline in deliveries from the first quarter of last year and a 20% decline from Q4 2024, marking the first annual decline since Q2 2020.

The company led by Elon Musk announced total first-quarter deliveries of 386,810, while total first-quarter production was 433,371. Car production fell by about 1.7% year-on-year.

TSLA’s deliveries came in at a “complete disaster” in the first quarter of the year that is difficult to explain, and Tesla is at a crossroads where Musk either turns things around and reverses the dismal Q1 performance. Otherwise, it is clear that darker days may lie ahead that could disrupt Tesla’s long-term story.”

Following the report, Tesla’s stock price fell about 5%. As of this writing, the stock is trading at $166.69 per share. The electric car giant’s stock is now down more than 33% this year, while over the past 12 months it has fallen more than 17%.

Oil Continues to Gain as Geopolitical Supply Risks Intensify

Oil prices continued to gain on Wednesday as investors monitored concerns about crude and fuel supplies following Ukrainian attacks on Russian refineries and the possibility of the war between Israel and the Palestinian Islamic Resistance Movement (Hamas) widening to include Iran directly.

Brent and West Texas Intermediate crude rose 1.7% in the previous session to their highest levels since October.

Prices rose after a Ukrainian drone attack on another Russian refinery threatened to disrupt more refining capacity in the country, reducing gasoline and diesel production. Russia is among the top three oil producers in the world and one of the largest exporters of oil products.

Investors are also worried that Iranian retaliation against Israel for Monday’s attack that killed senior military personnel could lead to supply disruptions in the key Middle East production region after Tehran vowed revenge. Iran, which backs Hamas, which is fighting Israel in the Gaza Strip, is OPEC’s third-largest producer.

US government data is due out later today Wednesday.

However, five OPEC+ sources told Reuters that a ministerial committee of the group is unlikely to recommend any changes to oil production policy at its meeting on Wednesday.

For further insights, check OneRoyal’s Facebook, Instagram, and Twitter pages and expand your understanding of financial markets with global perspectives.  Staying informed is crucial in the ever-evolving world of finance.

Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances, or needs.

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