London Daily

Focus on the big picture.
Friday, Jun 20, 2025

Gold, oil rise on Ukraine crisis; U.S. stocks end flat

Gold, oil rise on Ukraine crisis; U.S. stocks end flat

Oil and gold rose on Wednesday after NATO and the United States said Russia was increasing its troop build-up near Ukraine, while a dovish reading of minutes from the last Federal Reserve meeting helped stocks close mostly flat on Wall Street.

Stronger-than-expected U.S. retail sales data and higher inflation readings from Canada and Britain added to the outlook for tighter monetary policy worldwide, but geopolitical tensions kept markets for the most part focused on the Ukraine standoff.

Fed policymakers agreed it was time to raise interest rates but that any decision would depend on an analysis of inflation and other data each time they met, minutes from their two-day meeting in late January showed.

"The reading of the Fed minutes is less hawkish, less aggressive rate hikes, at least initially," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder.

"The minutes are little bit more dovish than we heard (Fed Chair Jerome) Powell talk in the post Fed meeting press conference in January," Ghriskey added.

On Wall Street, the Dow Jones Industrial Average (.DJI) fell 0.16%, the S&P 500 (.SPX) gained 0.09% and the Nasdaq Composite (.IXIC) dropped 0.11%. All 11 sectors of the S&P early in the session were higher, with the exception of the energy index (.SPNY), but stocks pared losses after the Fed minutes came out.

MSCI's gauge of stocks across the globe (.MIWD00000PUS) reversed course to post a 0.32% gain, while its emerging markets index (.MSCIEF) rose 1.23%.

Sharp gains earlier in Asian equity markets on Tuesday's news that Russia was withdrawing some troops faded in the European session, with the STOXX 600 pan-European index (.STOXX) ceding some early gains to close barely up 0.04%.

NATO questioned Moscow's stated willingness to negotiate a solution to the crisis, one of the deepest in East-West relations in decades, and accused Russia of increasing its massive military build-up surrounding Ukraine.

U.S. Secretary of State Antony Blinken backed the assessment, an outlook that lifted the price of safe-haven gold and boosted crude oil along with related assets as supply would be further constrained by an invasion.

"There are not really any signs of de-escalation. That's going to put commodities likely on firmer footing given that extent supply and inventories are really low," said Bipan Rai, North America head of FX strategy at CIBC Capital Markets.

U.S. crude futures rose $1.59 to settle at $93.66 a barrel, while Brent settled up $1.53 at $94.81.

The Russian ruble gained 0.64% to 75.12 per dollar as fears of immediate military action waned, for the moment.

Earlier, U.S. retail sales rebounded sharply in January amid a surge in purchases of motor vehicles and other goods, but higher prices could blunt the impact on economic growth this quarter. L1N2UR17V

Data showed retail sales rose 3.8% last month, almost double the consensus forecast by economists of a 2.0% gain.

Spot gold , which on Tuesday hit the highest level since June 2021 at around $1,879 per ounce, added 0.8% to $1,867.51.

U.S. gold futures settled down 0.8% at $1,871.50.

Inflation was still a market concern as data in Britain showed consumer prices increased at the fastest annual pace in nearly 30 years, reinforcing chances that the Bank of England will raise rates for a third meeting in a row.

Canada's annual inflation rate accelerated again in January to hit a fresh 30-year high of 5.1%, bolstering the case for a steady series of interest rate hikes.

U.S. Treasury and euro zone government bond yields extended their decline. The yield on 10-year Treasury notes was down 0.5 basis points to 2.040%.

The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, fell 3.4 basis points to 1.535%. Earlier it touched a low of 1.496%.

The dollar index fell 0.215%, with the euro up 0.18% to $1.1376.


3-Month, 10-Year curve
Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×