Broadgate: Market News 23/3
23 March 2012
The traditional perception of gold as a so-called safe-haven asset has been shifting in recent months, with the economic crisis in Europe hurting demand for the metal.
It has also been hit by U.S. Treasury yields climbing to multi-month highs and an increase in the cost of dollar funding.
The yen fell against most of its major peers before data forecast to show U.S. sales of new homes rose last month, damping demand for haven assets.
The dollar gained for the first time in three days versus the yen after Federal Reserve Bank of St. Louis President James Bullard said monetary policy may be at a “turning point” as the world’s largest economy rebounds
The yen has weakened 2 percent in the past month, the worst performance among the 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The dollar climbed 1.7 percent, while the euro advanced 0.3 percent.
Oil for May delivery traded at $105.46 a barrel, up 11 cents, in electronic trading on the New York Mercantile Exchange at 2:45 p.m. Tokyo time. Prices slid $1.92 yesterday to $105.35, the lowest close since March 15, and are down 1.5 percent this week.
The information set out herein has been obtained from various public sources and is by way of information only. Broadgate Financial can accept no liability of any sort in relation thereto and readers should obtain their own verification of any statement before making any decision which may have any financial or other impact.
Neither the information nor the opinions herein constitute, or are they to be construed as, an offer or a solicitation of an offer to buy or sell investments.