Gold prices hit record highs over $3,750/oz.
Gold prices crept up to record highs in Asian trade on Tuesday, buoyed chiefly by increased haven demand as recent comments from Federal Reserve officials sparked some caution over future interest rate cuts.
Markets were also on edge before a string of key U.S. economic signals this week, most notably an address by Fed Chair Jerome Powell later on Tuesday. Purchasing managers index data for August is also due today, while a key inflation gauge is on tap later in the week.
Uncertainty over U.S. policy added to risk aversion, after U.S. President Donald Trump announced steep fees on a popular work visa. Trump on Monday also made disputed claims on vaccines, autism, and a popular painkiller, which caused ructions in pharmaceutical stocks.
A pullback in risk-driven markets, such as Asian equities, benefited haven demand for gold. Chinese stocks tumbled on Tuesday following a strong run-up in the past month.
Asia stocks muted amid rate caution.
Most Asian stocks were rangebound on Tuesday, cooling after recent gains as mixed signals on U.S. interest rates and regulatory moves from President Donald Trump spurred heightened caution.
Regional pharmaceutical stocks were also rattled by Trump’s warning on links between autism and vaccines and popular painkiller Tylenol.
Chinese stocks slid more than 1% as local technology stocks retreated from a stellar rally over the past month. Hong Kong shares were especially hit by this trade.
Regional trading volumes were subdued on account of a Japanese holiday, while investors kept to the sidelines in anticipation of several key U.S. economic prints this week.
Japan’s Nikkei 225 Futures rose 0.1% after the index surged back to near record highs on Monday.
Asian markets took some positive cues from a strong overnight close on Wall Street, with U.S. stocks hitting record highs on gains in NVIDIA (NASDAQ:NVDA) and Apple (NASDAQ:AAPL). But this momentum was also seen fading into the Asian session, with S&P 500 Futures flat in regional trade.
Bitcoin price today down near $113k.
Bitcoin was largely unchanged on Tuesday, extending losses from a $1.5 billion crypto derivatives wipe-out in the previous session, while traders braced for further turbulence ahead of one of the market’s largest ever options expiries.
Investors also awaited Federal Reserve Chair Jerome Powell’s speech later in the day, which could provide more clues on the central bank’s policy outlook after last week’s rate cut.
The world’s largest cryptocurrency last traded 0.1% lower at $112,711.6 as of 01:55 ET (05:55 GMT), trading near its lowest level in two weeks.
Crypto sell-off wipes out $1.5 billion; Powell speech ahead
The token dropped over 3% below $112,000 on Monday but later pared some losses. Data from Coinglass showed about $1.5 billion worth of long positions across cryptocurrencies were liquidated on Monday, the biggest one-day washout in months.
More than 400,000 traders saw leveraged bets wiped out, with Ether dropping as much as 9% and altcoins such as Dogecoin also posting sharp losses.
Reports said the sell-off was triggered by overextended positioning and thin liquidity, which amplified price swings. It was further intensified by traders holding directional bets via options contracts that benefit from sharp swings.
Market participants are also preparing for a major expiry of option contracts on Friday. According to Deribit, more than $23 billion in Bitcoin and Ether options are set to roll off, one of the largest expiries ever.
The Federal Reserve is another key focus this week. Chair Jerome Powell is scheduled to speak later on Tuesday, following remarks from Governor Stephen Miran on Monday, while several other policymakers are due in the coming days.
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