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Gold surges and euro droops as wider war risks increase

Gold was headed for its largest weekly gain in almost 8 months on Friday and the euro hovered at a 13month low as Russia decreased its limit for using nuclear weapons and fired a hypersonic ballistic rocket at Ukraine.

The threat of escalation also sent European gas costs to a 1 year high and pressed investors towards safe havens, underpinning German financial obligation and putting the Swiss franc on course for its very first weekly rise in 2 months.

In Asia on Friday, chipmakers led stocks a bit higher after Nvidia touched a record high in U.S. trade on solid profits, with shares in Taiwan and South Korea up more than 1% and the Nikkei gaining 0.8%.

Gold was consistent at $2,677 an ounce and up more than 4.5% for the week so far while bitcoin, based on the edge of breaking above $100,000 for the very first time.

Assets connected to Adani Group companies stayed under pressure, with dollar bonds nursing losses following chairman Gautam Adani's indictment for scams by U.S. district attorneys.

Russia on Tuesday decreased its threshold for using nuclear weapons and over night responded to the U.S. and UK allowing Kyiv to strike Russian territory with western weapons by firing a. hypersonic intermediate-range missile at Ukraine's Dnipro.

Those weapons usually bring nuclear warheads, stated. experts at ANZ Bank, noting the attack sent oil rates higher.

The exchange suggests the war has actually entered a new stage,. raising concerns around interruptions to provide.

Brent unrefined futures are up almost 4.5% on the week. and edged approximately touch a two-week high of $74.44 a barrel in Asia. trade.

The euro has been friendless and down for seven of the past. 8 weeks as Europe deals with U.S. tariffs, slowing development, the. collapse of Germany's federal government and pressures in France's. federal government over its 2025 budget plan.

There doesn't appear to be anything on the plus side of the. euro ledger just at the moment, said National Australia Bank's. head of FX research, Ray Attrill.

At $1.0469 the typical currency is close to breaking support. at last year's low of $1.0448. European stocks are also. headed for a 5th weekly drop in a row, while world stocks. are up 1% today.

The dollar index considered a weekly gain of 0.4% and. traded at 107.05. S&P 500 futures were flat. Benchmark. 10-year Treasury yields held at 4.432%, more or less. stable on the week.

Markets suggest about a 58% possibility of a Fed cut, down from 83%. a week earlier.

Information in Japan showed core inflation held above the main. bank's 2% target in October, keeping pressure for a rate increase. Markets are pricing about a 57% opportunity of a 25 basis point Bank. of Japan rate hike in December and the possibility has actually injected. some volatility and even support for the yen.

The yen, down 4% this quarter, was trading firmer at 154.38. per dollar in early morning trade.

Together with speculation about (finance ministry). intervention, I think selling on upticks on dollar/yen is quite. decent, said Keita Matsumoto, head of financial institution. sales and options at Citigroup Global Markets Japan in Tokyo.

Our investor customers and business customers are rather. sellers of dollar/yen near 155.

(source: Reuters)