Gold peaks, Bitcoin surge and consumer confidence drops are the highlights from Monday’s market analysis.
A long-running measure of how consumers feel about their finances and the economy has fallen sharply, raising concerns that the government’s warning that the Budget will be “painful” has shaken people’s confidence.
Prices of the safe-haven asset have climbed 27% in 2024, their biggest annual rise since 2010, as investors also sought to hedge uncertainties spurred by the Israel’s invasion Palestine and war with Lebanon.
The Bank of England has kept interest rates on hold at 5%, but a further cut is expected later in the year. The first drop in rates for more than four years came in August, but borrowing costs remain high.
Bitcoin surge reaches a one month high
Bitcoin surge reaches a one-month high on Monday, sustaining its rally after the Federal Reserve’s super-sized rate cut last week, while the yen and most other major currencies stagnated with Japanese markets on holiday.
But it still isn’t tracking the growth of gold, that may be for numerous fraud cases and ponzi schemes that have emerged over the last few years and the looming legislation that is coming.
Oil prices gained slightly
Oil prices gained slightly during early trade on Monday, but Israel’s wars in the middle east may impact supply in the key producing region and the U.S. interest rate cut last week will support demand.
Brent crude futures for November were up 20 cents, or 0.3% at $74.69 a barrel and U.S. crude futures for November were up 22 cents, or 0.3%, at $71.22.
Gold peaks above the $2,600
Gold peaks above the $2,600 level on Friday for the first time, extending a rally boosted by bets for further U.S. interest rate cuts, and rising tensions in the Middle East.
Spot gold was up 1.3% at $2,620.63 per ounce by 1:43 p.m. ET (1743 GMT), while U.S. gold futures settled 1.2% higher to $2,646.20.
What this means for you
Interest rates affect the mortgage, credit card and savings rates for millions of people across the UK. With so many household’s surviving on loans and credit cards the anxiety for a interest rate drop is almost over.
The fact that gold is climbing means this will happen sooner rather than later, but a lot will depend on Rachel Reeves speech today in Liverpool. Where she will outline the labour plan, which the market is waiting for. The markets have treated labour plans for economies in the past but there’s a lot more certainty about them now that they are more centrists around the economy.
For those who are investing on the side, the next three months will be a speculative market, there are a lot of factors which could go either way, so ensure you have your triggers and levels in place, adjusted daily, to minimise your losses.
