Gold (GLD) continued to reach records. Prices rose to all-time highs on Oct. 28, 2024.
Additionally, investors bought more gold equities at levels not seen since 2020. Inflows totaled $3.1 billion. Demand for the metal is rising because investors want diversification away from the U.S. dollar currency.
Gold is following the strength in the cryptocurrency market. Bitcoin (BTC-USD) closed at almost $70,000 and is likely to trade above its all-time high of $73,802. Despite the strength of alternatives to the U.S. dollar, the Dollar Index Bullish Fund (UUP) bottomed at around $28 to close at $29.28. Its rally could end but would depend on the outcome of the U.S. elections in two weeks.
Oil prices are in a troubling downtrend. Every time WTI crude prices rallied, markets would find a reason to panic sell. On Monday, oil prices plunged by 5%. It settled at below $68 after Israel targeted Iran’s military areas only.
Weak oil prices will hurt the performance of energy stocks like Vista Energy (VIST), Baker Hughes (BKR), and Sunoco (SUN). However, those firms have strong prospects and will outperform the sector.
Looking ahead are the earnings reports from Exxon Mobil (XOM), Chevron (CVX), and ConocoPhillips (COP). Their results will have an outsized influence on energy markets later this week.
