US Markets Round Out Another Strong Week – Dow Up 1%
US stocks concluded another impressive week, with all three major indices recording gains. The Dow led the charge, closing 0.97% higher on the day, followed by the S&P, which rose 0.35%, and the Nasdaq, which edged up 0.16%. Treasury yields had a mixed session as the 2-year/10-year curve flattened once again. The 2-year yield climbed 2.4 basis points to 4.373%, while the 10-year yield fell by the same amount to 4.408%. Meanwhile, the US dollar continued its upward trajectory, with the DXY index hitting a two-year high above 108 before settling at 107.55 by the close. Concerns over the escalating conflict in Ukraine weighed on oil prices, with Brent crude rising 1.3% to $75.17 and WTI up 1.6% to $71.24. Gold had its strongest week in two years, climbing another 1.6% to close at $2,712.69.
Gold Back in Favour as Geopolitical Concerns Weigh
Gold prices surged back above $2,700 on Friday, marking the metal’s largest weekly gain in two years. After falling sharply from its record high in the weeks following Donald Trump’s decisive election victory—dropping nearly 9% from peak to trough—geopolitical tensions, particularly the escalation of the Russia-Ukraine conflict, have reignited investor demand. Over the past seven trading days, gold has rebounded over 7%, with traders bracing for further volatility in the coming days. Should geopolitical concerns intensify, gold could quickly challenge the record highs seen just weeks ago.
Quiet Monday to Kick Off the Trading Week
The trading week begins with a relatively quiet economic calendar, though market sentiment remains susceptible to geopolitical developments. Early FX trading saw some gapping following Donald Trump’s announcement of Scott Bessent as Treasury Secretary, which is expected to provide a further boost to stocks. The Asian session has already delivered slightly better-than-expected Kiwi retail sales data, and later today, the European session will feature the release of German IFO Business Climate figures. While little of note is scheduled for the US session, traders should remain vigilant as geopolitical updates could drive market movements throughout the day.
