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HomeUncategorizedWorld gold price skyrocketed, US stocks plummeted

World gold price skyrocketed, US stocks plummeted

Risks from the US inflation report and consumer confidence made each ounce of gold increase $ 24, while Wall Street fell about 3%.

Closing the trading session on June 10, each ounce of world gold for immediate delivery increased by nearly 24 USD to 1,872 USD. Initial, gold price fell to $1,824, on expectations that the US Federal Reserve (Fed) would continue to raise interest rates until September when US inflation data in May reached the highest level since 1981.

However, prices then accelerated again after investors assessed the impact on the economy. Survey results from the University of Michigan showed that US consumer confidence in early June hit a record low amid soaring gasoline prices.

World spot gold price movements in recent sessions.

World spot gold price movements in recent sessions.

“Gold prices have had a big volatile session, due to the impact of inflation reports and consumer confidence,” said Tai Wong, a precious metals trader in New York. He said that the movement of gold next week will depend on the Fed’s policy meeting.

In the physical market, gold prices in India hit a 7-week high. Meanwhile, Covid-19 has restrained demand in China.

On Wall Street, indices US stocks yesterday fell sharply after inflation data and consumer news. Closing the session on June 10, the DJIA lost 880 points, or 2.73%, to 31,392. The S&P 500 fell 2.91% to 3,900 points. The biggest drop was the Nasdaq Composite, with 3.52%, to 11,340.

The decline occurred with almost all 30 stocks in the DJIA. On the NYSE, for every 5 losers, there is 1 gainer. Apple stock yesterday lost 3.9%. Microsoft and Dow fell 4.5% and 6.1%, respectively. Salesforce lost 4.6% and Amazon fell more than 5%.

In addition to technology stocks, banking and cyclical stocks also fell. Experts say this reflects recession fears. Wells Fargo shares fell 6%, Goldman Sachs lost more than 5%. Boeing down 5%.

The other day’s developments caused Wall Street to record its worst week in months. In total, the DJIA lost 4.58% this week. The index has fallen 10 weeks in the past 11 weeks. The S&P 500 and Nasdaq Composite lost 5.05% and 5.6%, respectively, the worst since January.

Ha Thu (according to Reuters, CNBC)

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