Gold prices today scaled the $2,000-level for the first time in a year-and-a-half

US stock markets: Geopolitical worries are clouding the outlook for U.S stocks, even as Russia’s invasion of Ukraine moderates expectations for how aggressively the Federal Reserve will tighten monetary policy in the coming months. 

Concerns over the conflict weighed on the S&P 500 on Friday, as the index pared a rally that has seen it rise 5.2% from its Feb 24 intraday low. The see-saw moves come as investor hopes that the Fed may raise rates less severely than anticipated vied with worries about inflation and higher commodity prices, stoked by sanctions against Russia, one of the world’s biggest commodity exporters. 

Investors have virtually priced out the chances of a hefty 50 basis point rate hike in March, giving a lift to the technology and growth stocks that had been pummeled in recent weeks by anticipation of harsh Fed tightening. 

Economic Calendar

The stock market has been buoyed by expectations for a less aggressive Fed and lower yields in aggregate. The threat of higher interest rates has receded somewhat.

Dow Jones Industrial Average

The Dow Jones Industrial Average fell 0.53%. The best performers of the session on the Dow Jones Industrial Average were Walmart Inc., which rose 2.53% or 3.53 points to trade at 142.82 at the close. Meanwhile, UnitedHealth Group Incorporated added 2.48% or 12.06 points to end at 498.65 and Walgreens Boots Alliance Inc. was up 2.14% or 1.00 points to 47.72 in late trade. The worst performers of the session were Boeing Co, which fell 4.24% or 8.01 points to trade at 180.84 at the close. American Express Company declined 3.86% or 6.94 points to end at 172.95 and Visa Inc. Class A was down 3.35% or 6.94 points to 200.29.

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NASDAQ 100

The NASDAQ index fell 1.66%. The top performers on the NASDAQ Composite were Atreca Inc. which rose 211.38% to 5.20, Imperial Petroleum Inc. which was up 53.64% to settle at 3.38 and VEON Ltd which gained 52.09% to close at 0.40. The worst performers were Cerberus Cyber Sentinel Corp which was down 25.74% to 4.53 in late trade, Cambium Networks Corp which lost 24.66% to settle at 20.56 and View Inc. which was down 23.78% to 1.41 at the close.

Oil price - Crude Oil market, Brent Oil market

Oil prices soared to their highest since 2008 due to delays in the potential return of Iranian crude to global markets and as the United States and European allies consider banning imports of Russian oil. 

Talks to revive Iran's 2015 nuclear deal with world powers were mired in uncertainty on Sunday following Russia's demands for a U.S. guarantee that the sanctions it faces over the Ukraine conflict will not hurt its trade with Tehran. China has also raised new demands, according to sources. In response to Russia's demands, U.S. Secretary of State Antony Blinken said on Sunday that the sanctions imposed on Russia over its Ukraine invasion have nothing to do with a potential nuclear deal with Iran. 

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The United States and European allies, meanwhile, are exploring banning imports of Russian oil, Blinken said on Sunday, and the White House coordinated with key Congressional committees moving forward with their own ban. U.S West Texas Intermediate crude rose $10.83, or 9.4%, to $126.51.

Precious and Base Metals - Gold price, Silver price, Palladium price

Gold prices today scaled the $2,000-level for the first time in a year-and-a-half, as investors rushed to the safety of the metal in the wake of an escalating Russia-Ukraine crisis, while supply disruption fears sent palladium to an all-time high. Spot gold was up 0.9% at $1,986.83 per ounce, after scaling to its highest since Aug. 19, 2020, at $2,000.69 earlier in the day. U.S. gold futures rose 1.3% to $1,992.00.

If this was risk aversion driven by the U.S. Federal Reserve as seen ahead of this war, that wasn't something that lifted gold as that risk aversion was about rising rates, which is not an environment in which gold does well. This risk aversion, however, is geopolitical, and so there seems to be a reflective demand for non-paper assets. 

Trade Commodities Today! GOLD, SILVER, and OIL

Fighting stopped about 200,000 people from evacuating the besieged Ukrainian city of Mariupol for the second day in a row on Sunday, as Russian President Vladimir Putin vowed to press ahead with his invasion unless Kyiv surrendered. Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.4% to 1,054.3 tonnes on Friday - their highest since mid-March 2021. 

Palladium was up 4.3% at $3,130.16 per ounce, after hitting an all-time high of $3,172.22 earlier in the session. Russia accounts for 40% of global production of the auto-catalyst metal, used by automakers in catalytic converters to curb emissions. We're looking at a very significant pick-up in concerns around the disruptions with Ukraine seemingly because the conflict is showing signs of broadening. Spot silver was up 0.4% at $25.76 per ounce, while platinum jumped 2% to $1,143.47.

Traditional Agricultures - Corn futures, Wheat futures

Wheat futures galloped to another 14-year high as Russia’s invasion of Ukraine increasingly fanned fears of massive disruptions to grain exports from the Black Sea region. Wheat and corn futures advanced by their daily trading limits during a volatile session, though the corn market later trimmed its gains. The week-old war has closed Ukrainian ports and prompted unprecedented Western financial sanctions against Russia, leaving crop buyers rushing to seek alternative supply sources. Russia and Ukraine account for about 29 percent of global wheat exports and 19 percent of corn exports.

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