Gold prices plummeted! Biggest single-week decline in 15 years

Source: CCTV Finance

Last week, gold, as a traditional safe-haven asset, unexpectedly declined for the third consecutive week. The main contract price of gold futures on the New York Mercantile Exchange fell by 9.62%, marking the largest weekly decline in 15 years; silver futures also dropped by 14.36%.

Last week, the three major US stock indexes all declined

The Nasdaq fell over 2%

Last week, escalating Middle East geopolitical conflicts and rising energy prices triggered concerns among many governments and central banks about high inflation and economic stagnation, effectively ruling out the possibility of the Federal Reserve cutting interest rates this year. Under multiple influences, US stocks declined for the fourth consecutive week, with the Dow Jones Industrial Average down 2.11%, the S&P 500 down 1.90%, and the Nasdaq down 2.07%.

Last week, Brent crude oil futures prices rose over 8%

In the crude oil market, ongoing Middle East conflicts continued to ignite price increases. Last week, the main contract price of US crude oil futures declined by 0.40% cumulatively, while Brent crude futures rose by 8.77%. Since the conflict erupted, US crude oil futures have increased by over 46%, with Brent crude futures approaching a 55% rise.

Last week, international gold and silver prices saw significant declines

In precious metals, last week, soaring international oil prices raised concerns about a resurgence of global inflation. The US dollar index rose, and many central banks signaled hawkish policies. Amid ongoing Middle East conflicts, gold, as a traditional safe-haven asset, unexpectedly declined for the third consecutive week. The main contract price of gold futures on the New York Mercantile Exchange fell by 9.62%, the largest weekly decline in 15 years; silver futures dropped by 14.36%.

G7 foreign ministers to hold meetings this week

Focusing on Middle East and Russia-Ukraine conflicts

This week, geopolitical risks remain the market’s focus, with global capital markets expected to stay tense, closely watching the chain reactions triggered by soaring energy prices. On Thursday and Friday local time, the G7 foreign ministers will hold meetings in France, focusing on the situation in the Middle East and Russia-Ukraine conflicts. Last week, G7 foreign ministers stated they would take necessary measures to support global energy supply and reiterated the importance of protecting maritime routes, including the Strait of Hormuz.

US and Eurozone manufacturing PMI data to be released this week

US economic data are relatively light this week. On Tuesday, local time, the US March Manufacturing Purchasing Managers’ Index (PMI) and the Eurozone March Manufacturing PMI will be released. Analysts believe that the release of PMI data from multiple countries will preliminarily show the impact of geopolitical conflicts and soaring energy prices on business activities, likely intensifying risk aversion in US stocks this week. The final US March University of Michigan Consumer Sentiment Index and the one-year inflation expectations will also be announced this week.