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Gold, US stocks were sold off together


The world gold price lost more than 50 USD an ounce yesterday, while the S&P 500 index fell nearly 4%.

Closing the trading session on April 13, each ounce of world gold for immediate delivery fell by nearly 54 USD, to 1,818 USD, the lowest in more than a month. The reason is that the dollar price skyrocketed due to investors’ concerns about the global economic slowdown and the expectation that the US Federal Reserve (Fed) will raise interest rates sharply. These things make gold less attractive.

“There’s no safe-haven trade. Gold is selling off. The market’s having a huge correction. When volatility goes this high, you don’t see a safe place,” said Phillip Streible. – explains market strategist at Blue Line Futures.

World gold price movements in the past few sessions.

World gold price movements in the past few sessions.

US inflation data last week led investors to now forecast that from now to September, the Fed will raise interest rates by a total of 1.75%. In which, this week’s increase will be 0.75%.

After the inflation data, the world gold price dropped sharply to 1,824 USD, then increased sharply when investors were concerned about the global economy. The volatility continued into this week, showing a tug-of-war from factors affecting gold.

On the market US stocks, the S&P 500 index fell 3.88% to 3,749 – the lowest since March 2021. The index has also fallen into a bear market, having lost a total of 21% since its January peak.

DJIA yesterday fell 2.79% to 30,516 points. Nasdaq Composite lost 4.68% to 10,809 points.

Stock investors also fear a recession ahead of this week’s Fed meeting. Shares of Boeing, Salesforce and American Express fell 8.7%, 6.9% and 5.2%, respectively, dragging down the DJIA. Tech groups like Netflix, Tesla and Nvidia also lost more than 7%, sending Nasdaq to a new 52-week high and the lowest since November 2020.

Travel stocks even fell by double digits. Carvival Corporation and Norwegian Cruise Line lost 10% and 12% respectively. Delta Air Lines is down more than 8%. United Airlines lost 10%.

All major sectors in the S&P 500 fell yesterday, led by the energy group, which fell more than 5%. Non-essential consumer goods, communication services, information technology and electricity – water – gas decreased by more than 4%.

“Yesterday’s performance showed that many investors are taking profits or rearranging their portfolios,” said Jeff Kilburg, chief investment officer at Sanctuary Wealth.

Ha Thu (according to Reuters, CNBC)

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