Gold Falls 6% and Oil Rises 2% in Reaction to War

Financial markets are reacting strongly to the latest developments in the war in the Middle East. Gold and silver plummet again, at the same time that stock exchanges experience slippage. The barrel continues surfing the wave.

The negative feeling that has existed among investors since the start of the war is again noticeable this Monday, March 23rd. The only exception is negotiations linked to oil, whose global market is suffering from a cut in supply, causing prices to rise.

At 9:40 am, the value of futures contracts Brent oil (reference in European markets) rooms 2.37%up to 108.93 dollars per barrel. O WTI (namesake for the USA) advance 1.06% for $99.27.

Furthermore, there is a sell-off evident, which even reaches energy.

It’s just that the European natural gas reference are TTF futures contracts. These are falling 4.20% in the session and remain at 59,255 eurosafter the all-time high reached on Thursday, when it exceeded 69 euros.

Gold and silver down sharply

Ores are among the falls with the greatest impact. Negotiations feature a sell-off widespread. Typically seen as a safe haven asset in situations of uncertainty, gold falls again aggressively, in the order of 7.54%up to $4,262.09 per ounce. Since the start of the war, there has been a drop of almost 20%which takes the price to December lows.

At the same time, silver loses 8.62% and an ounce costs 63,737 dollars. At issue is a 30% cut compared to that observed at the beginning of the waralso to the lowest value since December.

Stock markets fall all over the world

Stocks follow the same path. In the case of main European squaresthe reference indices record declines of around 1% and 2%while in Lisbon, the PSI loses 1.5%. The aggregate index Euro Stoxx 600 drops more than 2%.

Nas asian bagsthe pessimism was even more felt, with drops of 3.5% in the Japanese and Chinese stock markets and 6.5% in the Korean stock market.

We await the reaction of Wall Street, which opens at 1:30 pm in Lisbon. It is true that S&P 500 futures are down 0.83%, which signals greater serenity.