The prices of gold fell after listing in all-time highs on Wednesday, defying the rise of the dollar, which kept pressure on the yen and the euro, while World stock markets fell due to investors’ reluctance to make big bets before the US elections.
Investors are also rethinking the extent to which the Federal Reserve might have to cut interest rates, following U.S. economic data that pointed to an economy that continues to expand and create jobs.
The markets value 92% possibility of a 25 basis point cut at the November Fed meetingey of another similar reduction for the end of the year.
US 10-year Treasury yields at three-month highwith an increase of 3.8 basis points, to 4.244%.
“Rising yields mean a pro-growth government could come to power and there is some fear of deficit spending,” said Thomas Hayes at Great Hill Capital in New York.
How the three main indices are traded in New York
Wall Street’s three main indexes fell, weighed down by consumer discretionary, healthcare and technology stocks. The Industrial Average Dow Jones fell 0.5%, to 42,700.16 points; the S&P 500 index fell 0.4%, to 5,830 points; and the Nasdaq Composite 0.6% remained, at 18,469.35 points.
The world stock index MSCI declined by 0.41%, while the pan-European STOXX 600 fell 0.3%.
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The odds that the former Republican president donald trump defeat Democratic Vice President Kamala Harris have increased on betting websites, although Polls show that the race for the White House remains close.
The prospect of another Trump presidency is in investors’ sights as Their policies include tariffs and restrictions on undocumented immigrationamong other measures, which are expected to raise inflation.
Gold and dollar: two key indicators that the market watches
He gold started to fall after touching a new historical maximum of US$2,757.99 per ounce. The demand for the gold metal as a safe haven is partly due to concerns over the US elections and geopolitical tensions in the Middle East and Europe.
Bullion, which is up 33% this year, was later down 0.8% at $2,726.51 an ounce, and US gold futures were down 0.1% at $2,741. .50.
He dollar indexwhich compares the greenback with a basket of six major currencies, rose 0.4% to 104.48 units. The US currency improved 1.3% against its Japanese pair, to 153.08 units, and the euro fell 0.2%, to 1.0775 dollars, its lowest since the beginning of August.
Goldman Sachs said in a note on Tuesday that the euro could decline until 10% in a scenario in which an eventual Trump presidency would give way to strong tariffs and tax cuts.
Crude oil futures declined about 1%.
Source: Ambito
