The European Central Bank raised interest rates by half a percentage point

Eurozone inflation remains close to its highest levels

Market uncertainty has led to increased demand for safe havens

Oil prices are heading for their worst weekly performance since the start of the year

Oil prices have been falling throughout the week on growing uncertainty and concerns about lower global demand in the period ahead. Fears of a new global financial crisis have pushed oil prices below $70 a barrel despite economic data showing signs of recovery in China, the world's second-largest economy.

Opec + leaders met in Riyadh on Thursday to discuss efforts to strengthen market balance and stability. The committee is expected to recommend a production adjustment on April 3, but OPEC+ is likely to remain cautious and monitor the market unless Brent falls below $70 per barrel for an extended period.

Market uncertainty has led to increased demand for safe havens

Gold prices have risen sharply this week amid rising risk aversion. Global markets continue to focus on the banking crisis, especially as it spreads from the United States to Europe. Gold hit $1,950 an ounce, its highest level in more than five weeks.

Continued inflation and eurozone inflation data confirm the stability of price increases near their record levels, which contributes to continued demand for gold as a safe haven and a major hedge against inflation.

Gold has recently benefited from disappointing US data showing consumer confidence fell to 63.4 points in March, below expectations. At the same time, the previous value was revised up from 66.4 to 67.0.

The European Central Bank raised interest rates by half a percentage point

The European Central Bank raised interest rates by half a percentage point at its meeting this week, as expected. However, despite the rate rise, the euro has resumed its decline against the dollar after failing to sustain gains amid persistent concerns about the Credit Suisse banking crisis.

Christine Lagarde, ECB president, confirmed yesterday that the bank intended to continue its pace of monetary tightening while targeting 2 per cent inflation, especially if it judged economic conditions warranted further rate rises. However, she stressed that the bank would monitor developments in the banking sector and take appropriate action if necessary.