Market Roundup 14th August

Author: Ian Davis - Chief Operations Officer

Published: 22 Aug 2019

Last Updated: 1 Feb 2023

Contents: World Events

Synopsis

Gold hit a new sterling intra-day high of £1271.05 yesterday, before dropping some 2.91% when the US announced a delay to their trade tariffs on some Chinese goods.

Gold Sets New Sterling Record

Gold hit a new sterling intra-day high of £1271.05 per ounce yesterday, before dropping some 2.91% when the US announced a delay to their trade tariffs on some Chinese goods.

Monthly Gold Price

Market	Value*	Weekly Flux %
Pound Sterling	$1.2066	-0.71
FTSE 100	7149.39	-0.90
S&P 500	2887.39	-0.46
NASDAQ	7894.45	-0.32
CSI 300	3682.40	+0.64

Gold is currently trading at £1256.35 (+1.73%) an ounce.

Silver is currently trading at £14.30 (+2.14%) an ounce.

World Events

Gold prices have been buoyed recently by ongoing trade tensions, Brexit and the political crisis that has recently gripped Hong Kong. The resulting equity outflows from respective domestic market have caused global markets to shudder. Argentina has seen their currency battered with some 25% wiped off its value adding to emerging market struggles.

Adding to market woes news breaks today that bond markets are hinting at a recession here in the UK and US. The yield curve investors use to predict the future health of the economy now looks glum with the 10 year yield on US treasuries now below that of the 2 year yield. The UK yield curve inverted today for the first time since 2008! This gives an insight to the huge uncertainty factor now built into bond market prices.

Negative yields which are now almost daily news meaning investors of sovereign debt are effectively guaranteed to lose money. Although demand for bonds remains high, with over $15 trillion being held in global markets investors are now turning to safe haven instruments to protect their wealth.