Risk aversion heats up, gold prices rise, oil prices pay attention to European and American trade trends

Spot gold prices traded around $4,670 an ounce in early Asian trading on Tuesday. Gold prices hit an all-time high on Monday, mainly driven by geopolitical risk aversion in the market. Meanwhile, US crude oil prices fluctuated around $59.36 a barrel, and the focus of the market turned to changes in the trade situation that could affect demand.

Focus on the day

stock market

The performance of the world's major stock markets was under scrutiny on Monday. European stocks made a significant correction, with the more sensitive sectors of the trade environment leading the decline. Market analysts pointed out that some company revenues may be affected by the relevant trade policy changes, and the degree of impact varies by industry and region. Some analysts believe that the relevant situation changes may trigger a reassessment of the market's asset allocation.

Some Financial Institutions Group analysts estimate the impact could be concentrated in specific sectors. From a regional perspective, some European countries are relatively affected. Market participants, including users of trading platforms such as WeTrade, are closely monitoring the potential impact on global capital flows.

Jin Shi

Spot gold and silver prices both hit record highs on Monday, driven mainly by rising demand for safe havens. Spot gold prices rose, hitting a record intraday high. Silver performed even more strongly, gaining significantly during the year.

The rally is a direct result of concerns about geopolitical and trade risks. Some market analysts have pointed out that when market uncertainty increases, investors tend to reallocate assets, and traditional safe-haven assets such as gold are once again favored. For investors who trade precious metals on platforms such as WeTrade, this volatility presents both opportunities and challenges.

At the same time, the movement of the US dollar index also provided support for gold. In addition, market expectations for the future monetary policy of major central banks also provided macro-level support for precious metal prices.

oil market

International oil prices remained largely stable on Monday. On the one hand, the supply-side risks that had previously supported oil prices eased; on the other hand, the market turned its attention to trade developments that could affect global oil demand.

Brent crude oil and US crude oil prices were little changed. Market activity was relatively light on the day due to holiday factors. Market analysts believe that the focus of geopolitical risks has shifted. The new focus is on the trade relationship between Europe and the United States. Some analysts pointed out that any escalation of tensions in the trade sector could have an impact on the outlook for oil demand. In addition, supply concerns caused by seasonal factors also provided some support for oil prices.

currency market

The dollar index fell on Monday as risk aversion picked up and investors turned to traditional safe-haven currencies, triggering widespread risk-off trading.

The market's initial reaction was to sell the dollar, followed by a rebound in European currencies. Typical safe-haven currencies have performed strongly. Analysts are divided on the future prospects of the dollar. Some argue that if trade tensions escalate, the damage to the European economy may be even greater, and the dollar may not continue to suffer, and may even prompt some capital to flow back. Analysts at WeTrade cautioned that traders need to do risk management when currency volatility intensifies.

International News

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The head of Croatia's central bank is expected to become the next ECB vice-president, the first time an eastern European has sat on the institution's executive board, in a decision seen as a step forward in the region's representation at the central bank.

The British Prime Minister says a trade war is not in the interests of either side

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Norway and Sweden have expressed their readiness to participate in relevant regional missions

The Norwegian defense minister said that he would not refuse to participate in the relevant regional operations and expected to solve the problem through dialogue. The Swedish defense minister also said that he would not rule out the possibility of participating in the relevant regional missions, but the first step is to conduct reconnaissance missions with other countries.

The United Nations Development Programme will move some of its jobs to Europe

The United Nations Development Programme has announced that it will relocate some of its positions at its headquarters in New York, with nearly 400 jobs moving to Europe. The move is part of an organizational overhaul aimed at adapting to the current global environment and strengthening ties with partners. The agency stressed that New York will remain its global headquarters.

Domestic News

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Beijing sets up the first robot professional title

Recently, Beijing officially issued relevant measures to add a robot title evaluation major to the engineering technology series to accurately match the talent evaluation needs in this field and help the development of related industries. The measures have been officially implemented since this year and will start the first review in the near future.