Gold prices near an all-time high, hitting a record of $2,509.65 per ounce last Friday. The weakening US dollar, rising geopolitical tensions, and anticipated US interest rate cuts have all contributed to this surge in demand for the safe-haven asset. The ongoing conflicts in Ukraine, the Middle East, and potential retaliation from Iran over the recent assassination of Hamas’s political leader have heightened uncertainty, driving investors towards gold.
Meanwhile, in the UK, job vacancies have risen for the first time this year, with a substantial increase reported in July. The pound has also strengthened against the dollar to a one-month high, reflecting the economic optimism in the region.
In the defense sector, European companies are experiencing a drop in share prices after reports that Germany may halt military aid to Ukraine as part of budgetary constraints. However, the German Foreign Ministry has refuted claims of a complete halt in aid, indicating a gradual redirection towards international programs using frozen Russian assets.
On the housing front, the Bank of England’s interest rate cut has revitalized the UK property sector, leading to a surge in potential buyers contacting estate agents. This increase in activity has prompted property portal Rightmove to revise its 2024 forecast, now predicting a 1% rise in asking prices, up from an initial forecast of a 1% fall.
Overall, market dynamics are shifting due to various geopolitical and economic factors, with gold prices reaching new highs, the pound strengthening, and the housing market showing signs of resilience following monetary policy changes.
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