Significant gold recovery Oil and US indices in the Red Zone

American indicators win gold Oil

Significant gold recovery Oil and US indices in the Red Zone

Significant gold recovery Oil and US indices in the Red Zone: Stock markets weren’t doing well in the past week, especially in the United States,

where Wall Street’s indices declined on a weekly basis, despite posting gains on Friday.  

Evest follows market developments in the following report.


Oil is declining due to pressure from the United States

Gold best weekly performance since May

American indicators win on Friday But it ends the week lower

Tesla Fell



Oil is declining due to pressure from the United States

Oil prices fell slightly from Friday but remained in the  Red Zone.

Brent crude futures for ـJanuary on the London Futures Exchange fell by $0.63 (0.76%), to $82.24 per barrel. 

By this time, December futures for West Texas Intermediate crude were cheaper in electronic trading on the New York Mercantile Exchange (NYMEX) by $0.85 (1.04%), to $80.74 per barrel.

The market has been pressured by the appreciation of the US dollar against the backdrop of inflation reaching its maximum in the past three decades in October,
and experts’ expectations that the federal could raise the interest rate. 

The appreciation of the dollar reduces the purchasing power of market participants using other currencies.

An additional factor is the possible decision by U.S. President Joe Biden’s administration to free some oil from the country’s strategic reserves to combat rising energy prices.

CNBC also notes that oil prices are likely to change slightly compared to last week this weekend,
as their dynamics have been subject to alternating periods of stagnation and growth over the past five sessions. 

Brent has fallen 0.85% over the last five days, West Texas Intermediate crude – 1.05%.

In its monthly oil market report, OPEC cut its expectations of increasing demand for the current year by about 160 million barrels per day to 5.7 million barrels per day,
citing the impact of rising prices.


Gold best weekly performance since May

On Friday, alloys concluded their best week since May as investors bought them to hedge against rising inflation figures,
most recently the record high of more than 30 years in consumer prices. 

Gold has risen 7.5% since its lowest level in September and is now within 2% of the tie-break on an annual basis.

According to Bloomberg experts, recovering demand for gold jewelry may push gold prices even further. 

“Consumer demand led by gold jewelry, which mostly goes to emerging markets,
has performed very well in the first three quarters of this year,“ the experts added.

Jewelry accounts for 50% of world gold demand, followed by central bank reserves at 25%,
individuals at 15%, and industrial uses at 10%, according to iShares.

India is expected to experience the highest demand in the next six months as the wedding and wedding season begins.

The additional incentives of the Chinese New Year and the gift-giving season in the West could help to boost the performance of precious metal.

According to one gold expert: According to one gold expert: “We have to face the usual strongest period of gold demand of the year in terms of jewelry for the next five to six months,
and I think this is one of the reasons why gold performance remains unchanged today, comfortably above the $1800 level that is difficult to beat during summer through fall.

But here we are, in winter. Gold is doing very well.”

American indicators win on Friday But it ends the week lower

Stocks closed higher on Wall Street on Friday, but the market still ends the week lower as inflation concerns affected investors’ mood earlier in the week. 

Standard & Poor’s index added 33.58 points or 0.7% and closed at 4682.85 points.

Despite being closed higher, the main index still ends the week lower by 0.3%. 

This was the first weekly loss of the Standard & Poor’s 500 index in six weeks.

The Dow Jones Industrial Index rose 179.08 points, or 0.5 percent, to 36100.31 and the Nasdaq Composite Index closed higher 156.68 points,
or 1 percent, and closed at 15860.96. The Dow Jones index lost 0.6% weekly and the Nasdaq index lost 0.7%. 

Technology stocks were among the biggest gainers on Friday,
with the chip manufacturer Micron Technology stocks rising by 3.7% and Apple by 1.4%.

Telecom, industrial and health care companies also rose.

Spectrum Brands, owner of Cutter bug spray and George Foreman Grills, rose by 10% after announcing strong quarterly profits. 

Johnson & Johnson’s stocks rose by 1.2% after the company announced that it would split itself into two separate companies.

The company will separate its first aid and Listerine business from its medical equipment and prescription drugs.

It is thus the second major conglomerate to split itself this month after General Electric announced that it would also split itself into three separate companies.

Bank and energy stocks lagged behind the market.

Bank of America declined by 1.5%. The KBW index of the 24 largest banks closed lower 0.2%.

Lordstown Motors fell by about 18% after production received a frustrating update from investors,
with delays extending into the third quarter of 2022.


Tesla Fell 

Tesla fell by 2.8% after its CEO, Elon Musk, sold another portion of his shares following his pledge on Twitter to liquidate 10% of his shares. 

On the other hand, bond yields rose, with the yield on 10-year Treasury bonds rising to 1.57% from 1.55% late Wednesday. 

The latest stock earnings streak, resulting in a record highs streak for key indicators,
ended as investors shifted their focus from corporate profits to higher inflation. 

Investors have reviewed strong corporate report cards mostly over the past several weeks.

A wide range of companies has shown that they were able to get through the summer wave of Covid-19 cases and stranded supply chain issues successfully.