"Private investors have seized on gold's price drop. Gold's sudden retreat has given buyers the chance to reset the clock back before January's historic price spike."
Escalating geopolitical risk continued to dominate global markets' concerns, with safe-haven demand keeping the dollar index anchored near a multi-week high.
WTI crude front-month futures closed above $111/bbl, the highest closing on record since 2014. Meanwhile, ICE Brent closed above $109/bbl.
U.S. financial markets experienced a volatile week, largely influenced by geopolitical developments in the Middle East and fluctuations in energy prices. Investor sentiment was driven primarily by external events rather than domestic fundamentals.
Gold rose for a third consecutive session on Tuesday, while Treasury yields continued to decline. Comments from the Federal Reserve's Chair helped ease market expectations regarding a potentially tighter monetary policy.
The Weil European Distress Index shows that financial pressures on European companies had already moved into 'distress territory' before the escalation of tensions involving Iran, leaving firms with far less capacity to absorb another energy-driven shock.
The UK has about 1.59GW of currently installed datacentre capacity at just under 190 sites. If we add existing capacity to that which is planned to complete by 2030 and which has planning consent, we get 4.9GW.
Sterling fell by 0.5% against the dollar, dropping below $1.33, as the US currency strengthened due to a flight to safety. The dollar index increased by 0.3%.
London's Footsie is in a footloose mood again, with higher metals prices buoying mining stocks and corporate results from financial giants surprising on the upside. The index has scaled fresh heights in early trade, with investors showing enthusiasm for London-listed stocks amid global uncertainty.
Energy becoming more expensive globally and the weaker pound means Britain pays even more for those imports. Oil and most commodities are priced in dollars. A softer pound therefore magnifies the impact of rising global prices.
