Overnight Market Review (2022.5.24) The dollar fell sharply on Monday, as the European Central Bank hinted that it will raise interest rates, and the euro rose. Gold and oil prices also edged higher, with U.S. stocks closing higher.
Global gold markets: Gold prices climbed on Monday, boosted by a weaker dollar and worries about economic growth, but pared gains after U.S. Treasury yields rose. Gold futures were up 0.3% at $1,847.8.
At midday in Asian markets on Tuesday, gold futures prices settled above $1,850, and the dollar stabilized after falling sharply in the previous session. Yesterday’s fall in the dollar pushed gold prices to a two-week high. The dollar, typically negatively correlated with gold, recovered slightly on Tuesday after falling to a one-month low, while the yield on the U.S. 10-year Treasury note, the benchmark U.S. bond yield, also retreated.
U.S. stock futures resumed their losses in the pre-market on Tuesday, as Snap’s warning about future earnings reignited concerns about the economic outlook. “Snap’s warning has raised concerns that ad spending has now peaked,” the data said. “When the (economic) outlook is more bleak, ad spending will decrease. That will lead to lower investor sentiment.”
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