Daily Summary: Gold and Indices lower, Dollar bounces back💲

Summary of the Day: Gold and Indices Retreat from Historical Highs, Dollar at 2-Month High

• Indices on Wall Street are experiencing a correction as the euphoria surrounding gold hits a ceiling. Market stress is also generated by the lack of publication of further data regarding unemployment benefit claims, which are crucial from the Fed's decision-making perspective. The Russell 2000 small-cap index (US2000: -0.95%) is losing the most, followed by Nasdaq (US100: -0.7%), DJIA (US30: -0.65%), and S&P 500 (US500: -0.6%).
• According to Fed Governor Michael Barr, the central bank should approach rate cuts cautiously due to the persistent risk of inflation. Barr added that price pressure in services is somewhat dependent on high valuations on Wall Street.
• Despite a moderately good start to the session, indices in Europe have moved to the defensive (EU50: -0.6%). The Italian FTSE MIB (ITA40: -1.7%) lost the most, while the British FTSE 100 (UK100: -0.5%), Spanish IBX35 (SPA35: -0.5%), and French CAC40 (FRA40: -0.25%) saw milder declines. DE40 is flat.
• The precious metals market has had a very volatile session. Midday, silver reached a new all-time high of $50 per ounce. However, by the end of the day, sentiment clearly worsened, and contract prices are experiencing a broad correction: gold is down 2% to $3960 per ounce, platinum 2.45%, and palladium 2.8%. Silver is currently flat at $48.90 per ounce.
• In the FX market, we observe a continuation of bullish sentiment on the dollar (USDIDX: +0.6%), which has risen to a 2-month high. Nordic currencies are the weakest among the G10 currencies today (USDNOK: +1.1%, USDSEK: +1.2%), additionally losing amid oil declines. The Chinese yuan is one of the few strengthening against the dollar (USDCNH: -0.2%). EURUSD is down 0.55% to 1.156.
• The weakening appetite for risk does not favor the cryptocurrency market, with declines observed in almost all tokens. Bitcoin is down 2.3% to around $120,600, Ethereum is sliding 4.6% to around $4,320, and smaller tokens are under even greater pressure.
• Ferrari, a leader in the supercar market and a symbol of Italian craftsmanship, is down over 15% today. This is the aftermath of exceptionally disappointing results and even worse growth prospects. This is the second such large decline this year.
• Delta Airlines, one of the main American airlines, published a very good semi-annual report. The company exceeded market expectations and demonstrated a high operating margin. The stock is up over 4%.
• China, as part of a major escalation of the trade war, has introduced a series of new restrictions on rare earth metals. This supports the valuations of mining companies but may negatively impact microchip, electronics, and armament manufacturers.
• The prospect of ending or significantly de-escalating the current conflict in the Middle East is putting pressure on oil prices. Brent and WTI contracts are down about 1.5%.