Noor Trends News, Technical Analysis, Educational Tools and Recommendations
In an interview conducted by Dubai TV, Mohamed Hashad, Head of Research and Development at Noor Capital and a member of the American Association of Technical Analysts, commented on and analyzed the performance of key assets in the financial markets.
What is Driving Oil Prices Amid Geopolitical Tensions?
Oil prices opened the current week with a clear downward trend, dropping by more than 2%, despite the ongoing geopolitical tensions in the region. Two primary factors contributed to these losses. First, we saw profit-taking after last week’s significant gains. Secondly, the markets have evaluated China’s upcoming stimulus plan, valued at $71 billion, as potentially insufficient to revitalize the world’s largest energy consumer. With China’s economic outlook continuing to weaken, as indicated by several economic reports, growth in 2025 is expected to remain sluggish, contributing to the pressure on oil prices.
How Do You Assess Gold Prices Amid Geopolitical Tensions and the Upcoming U.S. Elections?
Gold prices bounced back from $2,605 per ounce, following the longest streak of daily losses since October last year, and are now hovering around $2,660 per ounce. Gold has benefitted significantly from the latest inflation data. Last week’s inflation report pointed to a slower pace of inflation, though the slowdown was less than anticipated. The Consumer Price Index (CPI) came in at 2.4%, slightly below the previous reading of 2.5%, and above the forecast of 2.3%. Gold remains a key safe-haven asset for investors amid ongoing geopolitical tensions in the Middle East, reinforcing its appeal during uncertain times.
What is Causing the Japanese Yen’s Decline?
The Japanese yen has been trading at its lowest level in two months, recently stabilizing above 149 yen to the U.S. dollar. The main driver behind this decline is the widening interest rate differential between the United States and Japan. Recent remarks from Japan’s new prime minister have been less aggressive, hinting to markets that there won’t be a rate hike at the upcoming meeting on October 31. Meanwhile, expectations remain that the Federal Reserve may continue cutting rates by 25 basis points. This widening gap in interest rates continues to put downward pressure on the yen.
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