Oil falls, gold price jumps as banking stress deepens
Oil futures have fallen to their lowest level in 15 months and gold prices jumped 1% as concerns of risks in the global banking sector rise.
Oil futures fall
Commodities are also being rocked by the cacophony in the global banking sector. This as concern risks, of course, and contagion worries are dominating the headlines. Oil futures here showing prices have fallen to their lowest level in 15 months. This is as the banking concerns persist. The worry is that the banking sector fallout could lead to a recession, which will in turn hurt demand for oil. Oil - Brent Crude last week fell almost 12%, its biggest weekly fall since December. The slide coming despite the historic deal, which sees UBS, Switzerland's top bank, buying the country's number two Credit Suisse. I can share the chart here. Credit Suisse showing a big fall in today's session. UBS' purchase of Credit Suisse was to try and stop the banking crisis from spreading. However, it seems to have not done that, at least for this session.
Gold rises
Spot Gold is seen as a perceived safe haven and it looks like investors are rushing to gold, as we speak. It's getting a lift from all that chaos in the banking sector. Prices jumping 1% to the highest level since March last year. Our IG analyst Yeap Jun Rong says gold prices could adopt some 'cautious optimism' in the lead up to the Fed meeting as well, which is mid-week. Spot gold expected to retest the 1,992 per ounce level. A break above that could lead to a gain of 2,005 an ounce.
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