Midweek capital markets underwent significant changes. On Wednesday morning, as news of escalating conflicts in the Middle East spread, gold climbed back above the $3,300 level per troy ounce. When geopolitical uncertainty arises, investors often run to gold. In part driving this trend has been a strong recovery in gold prices.
At the same time, Bitcoin hit a new all-time high just under $109,500 on Wednesday, continuing its positive momentum from Tuesday. This increase is a reflection of the public’s increased appetite for all things crypto. Investors are piling into them as they’ve become more attractive during the topsy-turvy market conditions.
That bullish momentum on the EUR/USD currency pair sustained itself, now well north of 1.1300. The protest is a reaction to the dollar’s continued decline. With the dollar coming under selling pressure, the euro appreciates against the US dollar. According to analysts, the 1.1400 area could be the next obstacle for EUR/USD as it attempts to continue its advances.
The AUD/USD currency pair rebounded on its Wednesday’s pullback of the previous day while closing with solid gains on Wednesday. The Australian dollar nearly touched its important 200-day simple moving average at just above 0.6460. This move was further helped along by persistent selling pressure on the US Dollar. Broader implications market participants pointed out that the Australian dollar’s impressive resilience is an early signifier of broader trends in commodity prices and investor sentiment.
As Russian aggression spreads beyond Ukraine, market watchers are on the lookout for effects on both gold and cryptocurrency. The intersection of all three of these self-interested behaviors illustrates the complicated dance going on in the era’s contemporary financial landscape.