On Sunday, Hamas issued an official statement rejecting the terms for a hostage release-ceasefire deal discussed in Doha, pointing fingers at Prime Minister Benjamin Netanyahu for creating new hurdles in the negotiations. The local news agency Times of Israel reported on the development.
Netanyahu is scheduled to meet with US Secretary of State Antony Blinken on Monday, followed by Blinken’s journey to Cairo where discussions on the deal are ongoing. The US has expressed its intention to hold a second meeting later this week with the goal of finalizing an agreement by the week’s end.
Market Reaction
As of the latest update, the gold price (XAU/USD) is up by 0.24% for the day, trading at $2,501.
Risk Sentiment FAQs
In the world of finance, the terms “risk-on” and “risk-off” are commonly used to describe investors’ willingness to take on risk during a specific period. In a “risk-on” market, investors are optimistic about the future and more inclined to invest in higher-risk assets. Conversely, in a “risk-off” market, investors adopt a more cautious approach and prefer safer, lower-risk investments.
During “risk-on” periods, stock markets and most commodities (excluding Gold) tend to rise, benefiting from a positive growth outlook. Currencies of countries heavily reliant on commodity exports also strengthen, while cryptocurrencies see an uptick. In contrast, during “risk-off” periods, bonds, Gold, and safe-haven currencies like the Japanese Yen, Swiss Franc, and US Dollar perform well.
Currencies such as the Australian Dollar, Canadian Dollar, New Zealand Dollar, Ruble, and South African Rand typically rise in “risk-on” markets due to their strong ties to commodity exports. On the other hand, major currencies like the US Dollar, Japanese Yen, and Swiss Franc tend to appreciate during “risk-off” periods, driven by factors like reserve currency status, demand for government bonds, and capital protection.
Understanding market sentiment and how it influences asset prices can help individuals make informed investment decisions and navigate volatile market conditions effectively.