The euro is up, stocks are higher alongside bond yields, while gold and oil are pulled down.It's the so-called "peace" trade playing out as fears surr
The euro is up, stocks are higher alongside bond yields, while gold and oil are pulled down.
It’s the so-called “peace” trade playing out as fears surrounding the Russia-Ukraine situation are being faded. As much as the situation on the ground remains unchanged, markets are starting to adapt and adjust to the reality at least.
At the end of the day, while war is a cruel and terrible sight to behold, the reverberations of a battle between Russia and Ukraine may not have too dire consequences unless sanctions start to get heavier.
Yes, there will already be a toll on global markets based on what is in play now but as mentioned, we’re all adjusting and accepting the situation as it comes.
EUR/USD is up 0.6% to 1.0970 levels now, running into resistance from its key hourly moving averages @ 1.0973-81:
Meanwhile, S&P 500 futures are up 1.1% with the DAX up 3.0% on the day currently. 10-year Treasury yields are up 8.3 bps to 2.088% as bond yields are surging higher.
Elsewhere, oil is down nearly 5% to below $104 with Brent down nearly 4% to close to $108 at the moment. Gold
Gold
Gold is the most widely traded and important commodity. Prized for its historical importance and used for trading an exchange of goods, the gold market today is estimated at nearly $2.4 trillion.The value of gold fluctuates constantly, as it trades on public exchanges where it has a price that is determined by supply and demand. Gold has historically had tremendous significance and even today is extremely sought after. Gold has been used as a currency as it doesn’t corrode, and the material allows for some absorption of light creating a yellow glow, which lends the name yellow metal.Ultimately, institutional and retail investors buy and sell gold contracts or physical gold, thus creating the demand and supply flow.This can be pure speculation, to acquire or distribute physical gold, or as a hedge for commercial application. For day-traders, the purpose of trading gold is to profit from its daily price movements.How to Trade GoldDay-trading gold is speculating on its short-term price movements. Of note, physical gold is not actually handled or taken possession of, rather the transactions take place electronically and only profits or losses are reflected in the trading account.There are a number of ways to ultimately trade gold. Retail brokers typically offer exposure to gold through contracts-for-difference (CFDs).Beyond retail brokers, the main way to trade gold is via a futures contract. This represents an agreement to buy or sell something, i.e. gold at a future date. Buying a gold futures contract doesn’t mean you actually have to take possession of the physical commodity.Day traders close out all contracts (trades) each day and make a profit based on the difference between the price they bought the contract and the price they sold it at. However, on a futures exchange, gold moves in $0.10 increments only. This increment is known as a tick. It is the smallest movement a futures contract can make. If you buy or sell a futures contract, how many ticks the price moves away from your entry price determines your profit or loss.
Gold is the most widely traded and important commodity. Prized for its historical importance and used for trading an exchange of goods, the gold market today is estimated at nearly $2.4 trillion.The value of gold fluctuates constantly, as it trades on public exchanges where it has a price that is determined by supply and demand. Gold has historically had tremendous significance and even today is extremely sought after. Gold has been used as a currency as it doesn’t corrode, and the material allows for some absorption of light creating a yellow glow, which lends the name yellow metal.Ultimately, institutional and retail investors buy and sell gold contracts or physical gold, thus creating the demand and supply flow.This can be pure speculation, to acquire or distribute physical gold, or as a hedge for commercial application. For day-traders, the purpose of trading gold is to profit from its daily price movements.How to Trade GoldDay-trading gold is speculating on its short-term price movements. Of note, physical gold is not actually handled or taken possession of, rather the transactions take place electronically and only profits or losses are reflected in the trading account.There are a number of ways to ultimately trade gold. Retail brokers typically offer exposure to gold through contracts-for-difference (CFDs).Beyond retail brokers, the main way to trade gold is via a futures contract. This represents an agreement to buy or sell something, i.e. gold at a future date. Buying a gold futures contract doesn’t mean you actually have to take possession of the physical commodity.Day traders close out all contracts (trades) each day and make a profit based on the difference between the price they bought the contract and the price they sold it at. However, on a futures exchange, gold moves in $0.10 increments only. This increment is known as a tick. It is the smallest movement a futures contract can make. If you buy or sell a futures contract, how many ticks the price moves away from your entry price determines your profit or loss. Read this Term is down 1% to $1,965.
As commodity prices retreat, the aussie is seeing itself down 0.6% to 0.7245 while NZD/USD is down 0.2% to just below 0.6800. As for USD/JPY, the pair is clipping the 118.00 level for the first time in over five years.