News

Gold and Oil Soar post US Airstrikes

Metals

Gold prices shot higher fueled by the awakened geopolitical concerns following US airstrikes in Iraq. The United States of America launched airstrikes targeting top Iran and Iraq officials. Investors rushed to gold safety to escape any market risks. The price of a gold ounce rose to a four-month high of $1545, the price of a silver ounce edged higher to $18.25, and palladium extended rally to $1969.

Oil

Oil prices soared as the recent developments in the Middle East region raised investors' woes over oil supplies. After the Pentagon confirmed the death of top Iranian general in an airstrike conducted in Iraq, Iran threatened to revenge. The West Texas Intermediate crude futures rose to $63.80, and Brent futures advanced to $69.15.

USD

The dollar index, which measures the greenback against a basket of major currencies, bounced off a six-month low to trade higher at 96.89. The mounting geopolitical tensions heightened the demand for dollar safety. On the other hand, market participants are looking forward to the FOMC meeting minutes to have fresh insights over the US economic outlook. The EURUSD tumbled to $1.1152, and GBPUSD drifted lower to $1.3082.

Equities

Major US stock-index futures reversed from a record high post the US airstrikes in Iraq. Investors are afraid of the risks that could follow this incident, and they ran into profit-taking. The Dow Jones Industrial Average futures dropped to 28527, the S&P500 futures declined to 3227, and Nasdaq futures fell to 8779.

Major Economic Events

GMT Country Event Expectation Previous

9:30

UK

Construction PMI (Dec)

45.9

45.3

15:00

US

ISM Manufacturing PMI (Dec)

49.0

48.1

16:00

US

Crude Oil Inventories

-3.288

-5.474

19:00

US

FOMC Meeting Minutes

 

 


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