OptionsDesk broker Richard Perry speaks to Thomas Warner from Proactive London after a week in the world's markets that has seen the price of gold rise come close to bursting through the $2,000/oz ceiling.
Perry highlights the remarks from Chairman of the US Federal Reserve Jerome Powell early in the week, in which he clarified that interest rates are likely to remain high for an extended period to counter persistent inflation.
The flight into safe-haven assets continued into its second week, with Perry explaining that the gold price has now broken key technical resistance levels. This indicates more potential growth for the precious metal.
Tesla reported weaker than anticipated earnings, leading to a near 10% decline in their stock. The unexpected results from Tesla, along with its recent price activity, may suggest possible further price reductions.
Perry also noted a general market ambivalence despite global concerns such as Middle Eastern tensions and conflicts between Russia and Ukraine. The overarching sentiment is that the market is awaiting impactful events to determine price directions.