Strong recession fears triggered by weak U.S. labor market data led to significant pullbacks in global stock indexes. We are observing very sharp declines in Wall Street futures, continuing the moves from last Friday. This is also connected to the significant retreat in the Japanese stock market. The Nikkei 225 on the cash market is down over 13%, while the futures market has been suspended.
In this situation, we see very stable gold. On Friday, gold rose to near historical highs, but the session ended with a slight decline. A similar situation is currently visible. On the other hand, the movements in gold are minimal compared to other assets. Bitcoin, which was considered digital gold and a safe asset against recession, is losing heavily. The strong sell-off across all assets is causing a pullback in Bitcoin, which may be related to investors withdrawing funds from ETFs or futures.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Gold remains above 2400 USD per ounce. Source: xStation5
It is worth noting that recently published data for the second quarter in the gold market. The second quarter was quite weak in terms of demand - jewelry demand saw a significant decline, and only due to OTC demand (which has very limited significance in the context of physical gold), the overall situation did not look bad. On the other hand, ETFs experienced minimal sell-offs, while central banks bought a substantial amount of gold. Source: WGC
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
