Geopolitical Easing Offers Gold a Breather 

This week also saw SpaceX capture much of the market’s attention after listing on Friday. The stock has been a focal point due to its eye-watering valuation and the relative lack of major IPOs so far this year. The share price descended back below the $200 level on Wednesday, with stocks succumbing to a bout of risk aversion on the hawkish Fed, to close around $192 - still well above the $135 issue price. Investors are clearly anticipating that the company will turn around its profitability in the coming years.   

In summary, risk assets are breathing a collective sigh of relief following the signing of the US-Iran MoU. Yet after nearly four months of conflict, with major disruptions to oil supplies, depleted stockpiles, and damage to energy infrastructure, the inflationary legacy of the war may yet prove to be a lasting one. Oil price movements and how they shape interest rate expectations is expected to remain the prevailing driver of the broader market sentiment.