Gold, Oil Prices Slump, Fedspeak, Bitcoin – What’s Moving Markets By Investing.com – Investing.com

Gold, Oil Prices Slump, Fedspeak, Bitcoin – What’s Moving Markets By Investing.com – Investing.com

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By Peter Nurse

Investing.com -- Gold and oil prices slump amid worries of growing Covid cases in China and the possibility of early Fed tightening, while bitcoin recovers. Fedspeak will also be in focus, with Raphael Bostic and Thomas Barkin scheduled to talk later Monday. Also of interest will be the passage of the long-awaited U.S. infrastructure bill. Here's what you need to know in financial markets on Monday, 9th August.

1. Gold, oil prices slump 

Hurting sentiment Monday has been sharp falls in gold and oil prices as investors attempt to digest the growing number of Covid-19 cases, primarily in China, as well gains for the U.S. dollar after Friday’s strong nonfarm payrolls release.

The number of cases in China has hit a six-month high, with millions of people now put under lockdown and mass testing being conducted across the country. China is the largest exporter of oil in the world, as well as the second largest consumer, and these measures will likely curb economic growth and oil demand.

Goldman Sachs downgraded its economic growth forecasts for China, cutting its full-year GDP growth forecast to 8.3% from 8.6%, according to a report released late Sunday, with