Gold Hits Record High, European Stocks Shake

Gold hit a new all-time high on Tuesday, reaching $2,266.85 per ounce in the morning in London, amid expectations of interest rate cuts later this year by major central banks, including the European Central Bank, Bank of England, and Federal Reserve. The rise in gold prices is also fueled by geopolitical tensions in Europe and the Middle East, as well as concerns over oil supply due to the ongoing conflict between Israel and Hamas in Gaza.

The anticipation of central banks easing their policies comes as inflation pressures begin to ease, making gold an increasingly attractive investment compared to fixed-income assets like bonds, which yield less in a lower interest rate environment.

European stock markets had a mixed response upon returning from the Easter holiday, with London and Paris seeing gains, while Frankfurt dipped into the red. This subdued trading atmosphere follows a positive rally in Hong Kong’s stock market, boosted by better-than-expected Chinese manufacturing data, signaling optimism for China’s economy. However, Asian markets overall showed mixed results.

In the U.S., a recent report on manufacturing activity in March showing expansion for the first time after 16 consecutive months of contraction was overshadowed by concerns over rising prices, which could affect the Federal Reserve’s interest rate decisions. With U.S. jobs data due at the end of the week, markets are closely watching for signs that could influence the central bank’s next moves. Currently, market expectations for rate cuts by the Fed this year are slightly below the Fed’s own projections.

In the commodities market, both Brent North Sea Crude and West Texas Intermediate oil prices saw increases, amid ongoing concerns over global oil supply and the geopolitical landscape.

– London’s FTSE 100 and Paris’s CAC 40 experienced slight increases, while Frankfurt’s DAX saw a minor decrease.
– Hong Kong’s Hang Seng Index surged by over 2%, contrasting with a slight decline in Shanghai’s Composite index.
– The Dow Jones Industrial Average in New York ended lower in the previous session.
– Currency exchanges saw minor fluctuations, with the dollar gaining against the yen, and the euro and pound experiencing slight movements against each other.
– Oil prices climbed, with Brent North Sea Crude and West Texas Intermediate both registering increases.