Gold prices higher as uncertainty continues to tackle sentiment

European Markets

The FTSE 100 continued to drop near levels of $7,490. As big banks continue to downgrade Europe’s banking sector. Despite hawkish efforts by Jerome Powell last night to instil the strength of the US financial and economic stability. Market uncertainty continues to cap gains in the stock market.

The DAX is trying to recover losses from yesterday trading above $15,000.

Although tighter credit conditions will now be enacted in the banking system, fears of a systematic failure is still inhibiting market sentiment. At the same time, the market is somewhat comforted by the idea that current monetary policy can still be sustained, as evidenced by the ongoing increase in interest rates amidst fears of a recession.

Next up is the Bank of England inline to hike rates by 25 basis points to curb peaking inflation after the UK inflation rose yet again to 10.4% YoY from 10.1% in January.

The GBP/USD continued to rise now trading near 1.229 in anticipation of the key decision after having a good week, the EUR/USD found strong footing near $1,092 on the back of a weaking dollar.

Commodities

Gold prices were up and steady near $1977, hovering below $2,000. After market bets grew that the end of the tightening era is near and capped by the on-going banking system instability.

Oil prices trended higher in attempt to recoup losses after hitting their lowest level since 2021 earlier this week. Brent was hovering near $75.90 while WTI was trading above $70.

US Futures

US futures were in the green territory in the European session, The S&P500 was steady near 3,956, the Dow Jones was near $32,100 and Nasdaq futures was near 12,689.