Gold, crude oil prices rise as fear enters S&P 500

Gold futures have appreciated almost $100 in the last week of trade to hit new all-time highs. Now nearing $2,300, the price of gold has blown through previous highs in 2024 – showing little resistance around $2,100 or $2,200. This surge reflects investors’ growing preference for safe-haven assets amid uncertainties in the global economy. This recent spike suggests a cautious stance from traders, possibly due to concerns over lowering rates or geopolitical tensions overseas.

Crude oil price hits $85 for first time since October

WTI crude oil futures have surpassed $85 in recent trade, hitting a 6-month high. Trends on both the supply and demand side could be sending the commodity to such highs. Supply fears have grown in recent weeks, with rising tensions affecting the ongoing geopolitical conflicts in Russia and the Middle east – both top regions for oil production. Rising demand may be an additional factor as forecasts in usage rates spike in global economies like the US and China.

S&P 500 price falls 1%

S&P 500 index fell approximately 1% in recent trade; SPX still above $5,200. This slight downturn in the S&P 500, a broad measure of US equities, might signal caution among investors. However, the index remaining above $5,200 indicates a generally positive outlook on the health of large-cap U.S. companies. Movements in the S&P 500 are often seen as indicators of the broader market sentiment, impacting both equity and other financial markets.

Stock fear enters market

S&P 500 Implied Volatility index – VIX – rose more than 7% nearing 15.00. The VIX, often referred to as the “fear gauge,” measures the stock market’s expectation of volatility based on S&P 500 index options. A rise in the VIX indicates that traders expect significant movements in the S&P 500, suggesting increased uncertainty or fear in the market. This could lead investors to adopt more defensive strategies, impacting trading across various asset classes.

US dollar approaching fresh highs in major forex pairs

Dollar strength continues to start April with major pairs reaching key price levels. Notably, EUR/USD under 1.0800, GBP/USD nearing 1.2500, and USD/JPY nearing 152.00. While historically inversely correlated with assets like gold and crude oil (priced in USD), this strength underscores the dollar’s role as a global reserve currency, often sought after in times of market uncertainty.