The gold price edged higher to $1,858.39 per ounce on Tuesday, extending gains for a fifth straight session, as a sell-off in the U.S. dollar and stock markets boosted the precious metal’s safe-haven appeal. (Reuters)
Among other precious metals, silver increased 0.7% to $21.92 per ounce, while platinum dropped 0.4% to $955.01. Palladium went up 0.6% to $2,005.65.
Stock market turbulence: The stock market declined on Tuesday after disappointing economic data, while a profit warning from Snap Inc. hurt technology shares. (Bloomberg)
- The S&P 500 dropped 1.9% as of 10:10 a.m. New York time
- The Nasdaq 100 decreased 3.4%
- The Dow Jones Industrial Average went down 0.9%
- The Stoxx Europe 600 fell 0.9%
- The MSCI World index dropped 1.5%
Read our SPOTLIGHT to see how the major stock indexes have performed so far compared with the gold price.
E.U. inflation: ECB’s Lagarde stresses Eurozone is at a "turning point" on interest rates but says removing the Eurozone from negative interest rates won't be rushed. (Markets Insider)
“It’s definitely an inflation that is fueled by the supply side of the economy. In that situation, we have to move in the right direction, obviously, but we don’t have to rush and we don’t have to panic,” she said.
The IEA chief warns that unless China's demand stays weak, we'll have big problems on the oil markets. (CNBC)
If China returns to its usual oil consumption and oil demands, “then we will have a very difficult summer around the world,” Fatih Birol said.
A recession is pretty likely, but probably not this year, says former vice-chairman of the Federal Reserve Alan Blinder. (CNCB)
“In contrast to most of those forecasts … a recession is pretty likely, probably not this year - we don’t see any imminent signs - probably, fairly likely next year, maybe 50%-60% probability,” he said.
Read our SPOTLIGHT to see what a likely recession could mean for investors.
💥 Bitcoin could drop further and fall to $8,000 from its current levels, predicted Guggenheim Chief Investment Officer Scott Minerd. (CNBC)
“When you break below 30,000 [dollars] consistently, 8,000 [dollars] is the ultimate bottom, so I think we have a lot more room to the downside, especially with the Fed being restrictive,” Minerd said.
Read out SPOTLIGHT to learn why cryptocurrencies are so volatile.
What else is happening
EU foreign policy chief Ursula von der Leyen hopes a deal for a Russian oil embargo will be reached in the coming days. (CNBC)
“I hope we are talking about days. So what we are looking at is one or two member states that are landlocked, so cannot have oil via the sea and need alternatives in pipelines and in refineries, and there we are trying to find solutions,” she said.
With countries like Hungary, Slovakia and the Czech Republic blocking the measure, the 27 EU countries have been stuck over an oil embargo on Russia for several weeks.
According to the EU's migration chief, the war in Ukraine could spark a food shortage crisis that could trigger a massive migration wave from Africa and the Middle East to Europe. (Bloomberg)
A hunger-driven migration is “not going to be so manageable, it’s going to be more messy,” Margaritis Schinas said.
Despite a recent spike in monkeypox cases, the World Health Organization says the virus is "containable." As of Tuesday, there were 131 confirmed and 106 suspected cases of the disease. (CNBC)
Currently, it is unclear whether the recent spike in cases is only the “tip of the iceberg” or if transmission has already peaked, the WHO said.
🐲 New evidence suggests that a huge flying reptile known as "The Dragon of Death" lived alongside dinosaurs 86 million years ago. (Reuters)
The new specimen of ancient flying reptile, or pterosaur, measured around 30 feet (9 meters) long, like a yellow school bus.
See you next week!