Gold prices slide as stocks worldwide pick up, except Asian equity markets
ALBAWABA – Gold prices dropped significantly on Monday following a safe haven rally over the weekend while stocks worldwide diverged, with Asian markets dropping and United States (US) stocks rising on the prospects of an Israeli onslaught on Gaza.
Spot gold per ounce fell $10.9, or 0.95 percent, to $ 1,914.69, according to GoldPrice.org, while gold futures expiring in December fell 0.4 percent to $1,933.15 by 04:15 GMT, as reported by Investing.com.
Likewise, US Treasuries also slid on Monday, along with the US dollar, in a sign of optimism, despite thousands of Israeli troops amassing right outside of Gaza.
News agencies reported Monday that the safe haven rally has broken its weeks-long streak, which has driven gold prices to the highest levels in months.
According to Bloomberg, the US government bond market is coming off a rowdy week, with notes and treasuries swinging between the biggest gains and losses seen in years.
Stocks worldwide usually exhibit an inverse relationship to gold prices - Shutterstock
Demand was offset by troubling inflation data in the US, with Israel’s main share index, the TA-35, resumed its decline on Sunday, the New York-based news agency reported.
US equity futures edged higher while Treasuries and the dollar slipped.
Stocks worldwide mostly up on markets turning from safe havens as gold prices fall
A weakening dollar and decline in Treasuries at this point indicates that markets are weighing in efforts by the US and its allies to contain the spiralling situation in Gaza, which is on the brink of genocide.
Traders dealt in mixed back of stocks worldwide, with Asian markets sliding, US equities advancing and European stocks swinging from loss to gains.
S&P 500 futures rose by about 0.1 percent, while European contracts fluctuated, as Treasury 10-year yields rose more than 3 basis points after dropping 19 basis points last week, Bloomberg reported.
Stocks worldwide go down when the US dollar and gold prices go up - Shutterstock
Meanwhile, Japanese, Australian and South Korean shares declined, following on Friday’s fall by the S&P 500, with indexes in China sliding and London’s FTSE 100 flat, Agence France-Presse (AFP) reported.
In the Eurozone, Frankfurt's DAX index climbed 0.2 percent to 15,221.61 points and the Paris CAC 40 won 0.5 percent to 7,038.34 points, following a weekend of decline.
Market summary by AFP and Bloomberg:
New York - Dow: UP 0.1 percent at 33,670.29 (close)
Tokyo - Nikkei 225: DOWN 2.0 percent at 31,659.03 (close)
Hong Kong - Hang Seng Index: DOWN 1.0 percent at 17,640.36 (close)
Shanghai - Composite: DOWN 0.5 percent at 3,073.81 (close)
London - FTSE 100: FLAT at 7,599.09
Dollar/yen: UP at 149.55 yen from 149.53 yen on Friday
Euro/dollar: UP at $1.0530 from $1.0513
Pound/dollar: UP at $1.2163 from $1.2138
Euro/pound: FLAT at 86.58 pence from 86.58 pence
S&P 500 futures gained 0.1 percent as of 6:20 a.m. London time.
S&P 500 fell 0.5 percent in New York on Friday
Nasdaq 100 futures rose 0.3 percent.
The Nasdaq 100 dropped 1.2 percent
Japan’s Topix fell 1.5 percent
Australia’s S&P/ASX 200 fell 0.3 percent
China’s CSI 300 was down 0.8 percent
The Kospi declined 1.02 percent
Euro Stoxx 50 futures rose 0.1 percent
