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Market Snapshot – Geopolitical Tensions Override

Colin First
Updated
The gold prices and the stock markets move in opposite directions

Geopolitical Tensions Dominate

We have seen the geopolitical tensions around the world begin to rear its head again as the stock markets have responded to that by moving lower. The move lower began yesterday evening in the US session as the stock indices there moved lower due to comments from Trump that he wasn’t very happy with the way that the talks have progressed between the US and China and it also turned out that the talks between North Korea and the US have been postponed and there is a belief that it may not happen at all. A combination of these events have sent the stock markets into a tizzy and this is likely to continue to be the trend in the short term. The Asian markets and the European markets have also followed suit and they are also going to close the day in a weak manner which points to further weakness in the short term. The focus of the market now shifts to the Fed and the FOMC minutes which would be released later on and the market hopes that the Fed would sound hawkish which would help the markets and the dollar to move higher.

Gold Higher

The crypto market has also been spooked as we are seeing the BTC prices now trading near the $7800 support region and so far, the price action does not hold much hope for the bulls. The ETH prices have moved much lower and they are now trading near the $600 region as of this writing. The gold prices have moved higher on the back of the geopolitical developments though the support turned resistance at around the $1300 region looms ahead and this is likely to keep the move capped for now. We will have to wait and see how the situation develops and how the dollar responds to the same.

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This article was originally posted on FX Empire

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