- Gold and copper surge to new record highs with silver rising to the highest level since 2012.
- Helicopter crash claims the life of Iranian president and Foreign minister, adding to geopolitical risks
- US stock indices trade cautiously ahead of Nvidia earnings on Wednesday
Despite the lack of significant economic data releases on today’s agenda, developments over the weekend and the passing of Iranian president, Ebrahim Raisi have contributed to already heightened systemic risks. With reports of a helicopter crash that claimed the lives of the president and the Foreign minister on Sunday making the headlines, concerns over the health of Saudi King Salman have also contributed to uncertainty in the Middle East.
These factors combined with rising rate cut expectations allowed for an extension in Gold prices, securing another record high of $2,450. Similarly, Silver prices have surged 2.14% in the current session, reaching their highest level since 2012. Another metal that has ripped higher off the back of China’s increasing stimulus and better than expected industrial production data from the world’s second largest economy is Copper, climbing 2.40% at the time of writing, peaking at an all-time high of 10961.
For stocks, the big focus this week is the release of Nvidia earnings, scheduled for release after the US market closes on Wednesday. With the Trillion Dollar chipmaker and leader in AI leading gains in the SPX500 and US100 large year, it holds a significant weighting in both indices. But, previous earnings releases and the projected forecasts also have a major impact on other semiconductor stocks and AI related stocks.
Meanwhile, cryptocurrency is also trading in the green with Bitcoin currently advancing 1.17%, moving back to the $67,000 mark.
Although USD strength has subsided after the lower inflation print last week which has increased the probability of rate cuts, major currency pairs correlated with the USD have moved into a narrow range of support and resistance that could contribute to the next big move.
