Gold: Fed repricing and Iran peace deal – UOB
UOB Global Economics & Markets Research highlights that Gold advanced as expectations for another Fed hike this year eased following an interim US-Iran peace deal that pushed Oil and inflation expectations lower. Spot Gold hit its highest level since early June, while US Gold futures also edged higher, reflecting demand for the metal as yields and inflation fears moderated.
Safe haven benefits from softer Fed bets
"Gold prices rose on Tue as expectations of an interest rate hike from the Fed this year eased, following an interim US-Iran peace deal that sent oil prices and inflation fears lower. Spot gold was up 0.8% at $4,338.97/oz after touching its highest level since 5 Jun on Mon."
"US futures added 0.1% to settle at $4,354.40/oz."
"The early rally was fueled by a continued slide in oil prices spurred by the prospect of a US-Iran agreement that re-starts Middle East exports via the Strait of Hormuz. The yield on the 10-year US Treasury note declined more than 3 bps to 4.43%."
"US Treasuries held onto early gains on Tue, following a strong 20-year bond auction. The $13bn sale in 20-year bonds was strong, at a high yield of 4.927%."
"Indirect bidders took down 73.2% of the auction, up from the recent average of 64.9%."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The AI boom may follow the path of the 19th-century railway bubble, and builders may not be the ultimate winners
Goldman Sachs analyst Bobby Molavi compared the current situation to the 19th-century British railway mania: 500 companies spent more than the nation's annual income building 8,000 miles of railway, with most early investors losing out, while the real beneficiaries were the later "passengers." He pointed out that the current AI craze is driven by both debt and momentum, and that the S&P 500’s forward P/E ratio of 18x is only "a bit cheaper." Whether the builders can retain value is uncertain, and history does not offer an optimistic answer.
If Anthropic's IPO goes smoothly and the stock price rises next week, then everything remains the same for AI. Otherwise, some companies will go bankrupt.
The shrinking valuations of two major giants have triggered a chain reaction—investors are adopting more conservative revenue multiples for AI startups and are directly halting high-valuation financing for companies with zero revenue. Multiple venture capital firms have advised their portfolio companies to lower valuation expectations and to quickly build up cash reserves. Market participants warn that the outcome of Anthropic’s IPO will be a barometer for the industry: if successful, the boom will continue; if it fails, some companies may face elimination.
After the Brazilian election, political discount deepens; Morgan Stanley remains bullish on Petrobras (PBR.US), focusing on fuel pricing and dividends
Morgan Stanley still maintains its most optimistic "Overweight" rating, but has lowered its year-end 2027 target price from $31 to $25.
Corning (GLW.US) receives initial "Buy" rating from Jefferies! AI factories driving a fiber optic rush, with a potential global supply gap of up to 30%
For Corning, the recent profit growth mainly comes from the expansion of AI clusters. As the number of optical links crossing cabinets and campuses increases, customers need to deploy more optical fibers within limited conduit and cabinet space, thus driving demand for high-density optical cables and connection systems.
Crypto prices
More
