Nasdaq and gold hit record highs

Nasdaq and gold hit record highs

/ 06:18 AM May 21, 2024

NEW YORK, United States — The Nasdaq hit a fresh record Monday as leading bourses mostly rose, while gold also scored a new all-time high as the shock death of Iranian President Ebrahim Raisi helped bolster the haven investment.

Copper also struck an all-time peak and silver jumped to the highest level in more than 11 years. Gold had already hit a series of record highs this year.

Asian and European stock markets began the week higher, having recently struck all-time peaks along with indices on Wall Street, where the Dow ended above 40,000 points for the first time on Friday.


READ: Asian stocks advance after Wall Street closes out another winning week


In New York, the Nasdaq powered to a fresh record, while the Dow fell, retreating below 40,000 points.

Copper and gold are priced in US dollars, which has come under pressure recently from expectations that the US Federal Reserve will soon start to cut interest rates as inflation cools.

Gold struck a record $2,450.07 an ounce Monday, while copper’s all-time high stood at $11,104 per tonne.

Raisi was confirmed dead on Monday after search and rescue teams found his crashed helicopter in a fog-shrouded western mountain region, sparking mourning in the Islamic Republic.

Foreign countries had been closely following the search at a time of high regional tensions over the Gaza war raging between Israel and Hamas since Oct 7.

‘Geopolitical premium’

“Gold and copper have hit record highs, (and) silver jumped to an 11-year high… after the death of Iran’s president in a helicopter crash,” noted Neil Wilson, chief market analyst at Finalto trading group.


“There is a clear geopolitical premium since October 7th,” he said, adding that “expectations the Fed will cut rates soon is helping”.

READ: Copper, gold seen to get ‘largest immediate’ boost from Fed easing

Analysts said market sentiment was boosted additionally by China’s plan to support its struggling property sector.

“The market is sensitive to these two metals because gold is considered an inflation hedge and a safe haven, and because copper is a metal that is linked to global growth,” said Kathleen Brooks, research director at XTB.

Oil prices dipped after initially jumping on the Iran news.

Investors are looking to the release Wednesday of minutes from the Federal Reserve’s May policy decision for some insight into the thinking of decision-makers.

There are also several companies reporting earnings this week, with Nvidia at center stage on Wednesday. The company’s high-end processors have been prized by artificial intelligence companies, and the results could send the company’s shares to a new record high.

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While large tech companies lifted the Nasdaq, the Dow was weighed down by a 4.5 percent decline in JPMorgan Chase after longtime CEO Jamie Dimon signaled he is closer to stepping down.


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