Following Venezuela, the Dollar Rises While Oil and Gold Rise – Asia Market Wrap
The Dollar nudged higher, while Treasuries pared recent gains, as disappointing US job statistics did nothing to boost the case for additional Fed interest-rate cut.
The US Dollar strengthened against all of its Group-of-10 counterparts, particularly against the Yen. Treasuries slipped lower throughout the curve, with the 10-year yield rising more than 2 bps to 4.17%. Asian shares fell, and futures contracts for US and European equities predicted further losses. Bitcoin dropped 1.3%.
Tech stocks rebounded in Asia after a two-day selloff, while Chinese chipmaker MetaX Integrated Circuits Shanghai soared up to 755% on its public debut. The Indian rupee rose 1% when the central bank intervened to support the currency.
The commodities market saw more significant movements, with crude oil increasing more than 1% after Trump announced an embargo on tankers entering and leaving Venezuela, heightening fears about supplies from the OPEC member. Silver reached a new high of more than $66 per ounce, while gold drew closer to an all-time high. Platinum increased for the fifth consecutive day, reaching its highest level since 2011.
Gold is not far from its October record high of more than $4,381. The precious metal has increased by around two-thirds this year and is on course for its highest yearly performance since 1979. The searing surge has been fuelled by increased central bank buying, as well as a larger retreat by investors from government debt and important currencies. Geopolitical concerns have also added to its appeal as a safe haven.
