Strong fluctuations affected global markets throughout the week

Risk aversion pushes gold to $1,954 an ounce

 

 

 

 

 

 

 

  • The European Central Bank raised interest rates by half a percentage point

  • Inflation in the eurozone remained near its highest levels

  • Uncertainty in the markets contributed to increased demand for safe havens

Oil is heading for its worst weekly performance since the beginning of the year

Oil prices fell throughout this week, with increased uncertainty and fears of a global decline in demand in the coming period. Despite economic data showing signs of recovery in China, the second-largest economy in the world, fears of a new global financial crisis have pushed oil below $70 per barrel.

Leaders of OPEC+ met in Riyadh on Thursday to discuss efforts to enhance market balance and stability. The committee expected to recommend changes in production on April 3, but OPEC+ is likely to stay cautious and monitor the market unless Brent crude falls below $70 per barrel for an extended period.

Uncertainty in the markets contributed to an increase in demand for safe havens

Gold prices have seen sharp increases throughout this week with a trend toward risk aversion. The global markets have continued to be concerned about the banking crisis, especially with its spread from the US to Europe. Gold prices recorded $1950 per ounce, the highest in over five weeks.

The continuing inflation increases and Eurozone inflation data, which confirms the stability of price increases near their record levels, contribute to continued demand for gold as a safe haven and key hedging tool against inflation.

Gold recently benefited from the disappointing data released in the US, as data showed declining consumer sentiment in March, to 63.4 points, which is lower than expectations. Meanwhile, the previous reading was revised upwards from 66.4 to 67.0 points.

The European Central Bank raised interest rates by half a percentage point

European Central Bank raised interest rates by half a percentage point during its meeting this week, as expected. However, despite the rate hike, the euro is failing to maintain its gains and has returned to decline against the US dollar due to continuing concerns about the Credit Suisse banking crisis.

The ECB’s Governor, Christine Lagarde, yesterday confirmed the bank’s intention to continue its monetary tightening pace while targeting 2% inflation, especially as the bank sees economic conditions supporting the continuation of interest rate hikes. However, she stressed that the bank would monitor banking developments and take appropriate action if necessary.

Read this next

Interviews

Colibrix wants to take the LATAM payments market by storm

FinanceFeeds is excited to announce an exclusive interview with Aleksander Bobrov, the Head of Development at Colibrix, delving deep into the payment firm’s recent advancements and strategic positioning in the Latin American (LATAM) market.

Industry News

UK FCA provides guidance ahead of anti-greenwashing rule

“Consumers care about investing in products that have a positive impact on the planet and people. That’s why we want to boost the integrity of the market and ensure people can make informed decisions about how to invest their money.”

Retail FX

Moomoo onboards 100,000 Malaysian clients in six weeks

“We are committed to enhancing the investment experience with smarter tools and deeper insights. Our mission is to not only grow with the Malaysian market but to lead it, shaping the future of investing in the region.”

Institutional FX

Clearwater completes acquisition of Wilshire’s analytics solutions

“Our vision is to create the preeminent investment management solution for firms around the globe. Clearwater’s integrated platform eliminates the need for multiple data reconciliations, serving as a reliable singular source of truth.”

Fintech

BizCuits integrates DXtrade platform for CFD brokers and props

The DXtrade platform features built-in trading journals, performance dashboards, responsive charting, and mobile trading apps.

Chainwire

Decoding Bitcoin’s Future: Bybit Insights on Halving, ETFs, and Macro Shifts

In a riveting panel discussion hosted by Bybit, one of the world’s top three crypto exchanges by volume, key figures from the crypto industry gathered to discuss crypto and global finance.

Digital Assets

CoinMENA taps Zodia Markets for enhanced liquidity

“With Zodia Markets we substantially enhanced our service offering and can provide investors with more efficient avenues for entering and exiting the digital assets market, with minimal transaction costs and efficient settlement.”

blockdag

BlockDAG’s Rise: A Potential $20 By 2027 Against Bitcoin And Ethereum Classic’s Fluctuations, Achieving $19.5M In Presale

With projections setting BlockDAG’s value to soar to $20 by 2027, its innovative ASIC mining rigs and a strategic lunar keynote teaser enhance its allure as the top long-term cryptocurrency investment.

Chainwire

Unveiling the KARRAT Protocol: Pioneering the Next Era of Gaming, Entertainment, and AI Innovation, Reshaping Hollywood and Beyond

$KARRAT is the governance token of the KARRAT Protocol. Using $KARRAT, the community will determine how the KARRAT Protocol is integrated into games and products, empowering the community of players and consumers, much more than traditional entertainment titles have.

<