Tensions in Ukraine Fuel the Markets
Inflation fears briefly overpowered the focus from the standoff in Eastern Europe. While conflicting headlines in the news talk about Russian troops’ movements, the expectation of conflict is increased sensitivity to the threat. However, the Ukrainian border has yet to be breached. Nevertheless, the financial markets have reacted swiftly to the potential event as well as the political implications it carried.
US stocks and the S&P 500 have changed very little in terms of reaction to the potential risk. There is more potential impact here around inflation or dramatic interest rate changes. But the Ukraine situation is still something to keep an eye on during these uncertain times that can trigger either bullish or bearish trends.
Gold Trades Bullish, Commodities on Stalemate
Figuring out which opportunities are effectively worth it can be tricky. However, there are some assets traditionally known as safe-havens during risk trends. While crude oil is a market that can boost bullish moves as a result of inflation, geopolitical troubles, or poor economic forecasts, for the time being, the commodity awaits the next event. On the other hand, gold held former support as new resistance around 1,850. The precious metal represents safety amid uncertainty and is looking more and more appealing to investors.
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*OspreyFX would like to state that traders should research extensively before following any information given hereby. Any assumptions made in this article are provided solely for entertainment purposes and not for traders to guide or alter their positions. Please read our Terms & Conditions and Risk Disclosure for more information.
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