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Gold, yen ease after post-Brussels gains
Markets eventually steadied early on Wednesday after the big moves in reaction to the news of the terrorist attacks in Brussels on Tuesday, when investors shifted toward the perceived safety of havens such as gold, yen and government bonds.
Gold rose 0.4 per cent on Tuesday but was down below $1,240 an ounce on Wednesday morning. German and UK government 10-year bonds rallied overnight,
The US dollar held gains made against the euro and the pound. EURUSD traded in a very tight range in Asia, around $1.1215, while GBPUSD edged down to last trade at $1.4191.
USDJPY bounced higher to 112.48 yen. The greenback got a lift after Chicago Fed President Charles Evans said he expects two more rate increases this year, unless economic data comes in a lot stronger than expected or inflation picks up faster than anticipated.
Brent crude, the international benchmark, gained 0.6 per cent overnight to $41.79 a barrel, while West Texas Intermediate, the US marker, was down 0.7 per cent today at $41.18 after rising 3.9 per cent on Tuesday. Saudi Arabia was reportedly prepared to participate in an oil production freeze next month regardless of Iran’s participation, a move that could help support prices.
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