The precious metals were moving slightly higher this morning on some serious weakness in equities. All three major U.S. stock indices were about 1% lower from the opening bell, heading toward their worst performance in three weeks. Shares in Europe were also moving toward their biggest losses in three weeks as the Greek situation is beginning to way heavily on eurozone markets. Overall, the precious metals are likely to advance today amid red numbers across the global equities markets. Gold was again above $1,205/oz.
Stocks futures were pointing lower this morning, perhaps setting the stage for a day of modest losses for equities, as economic data in the U.S. has been cooling down of late. Jobless claims did come in below 300,000 for the sixth consecutive week, while the two main crude oil benchmarks are down 2% this morning following yesterday’s rally. Meantime, the precious metals opened in the green as they look to build momentum from yesterday’s gains, as well. Gold was trading around $1,205/oz while silver looked to inch back above $16.50/oz at 10 am ET.
Update: The metals may be in a store for a choppy day of trading, as each of the PMs (besides palladium) dipped into the red by mid-morning.
Wall St. is rallying on earnings reports this morning, but also taking disappointing industrial activity in the Northeast as a factor that will force the Fed to delay in raising benchmark interest rates from near zero.
The huge miss in the Empire State Manufacturing Index wiped out an overnight dollar rally, giving gold the space to pull into positive territory. Crude oil prices are higher for the fifth day, up over 3% in morning trading.
Slowdowns in industrial production and retail sales in China have traders expecting more stimulus measures from the central bank in Beijing.
Gold is up from two-week lows hit overnight, as the dollar consolidates after a failed run to hit 100 on the DXY index. Spot gold and silver are down 0.3%, while the dollar is down 0.8%. Crude oil is up modestly.
European stocks are down over rumors Greece is preparing to default on its IMF debt next month, while Wall St. is up and down despite good economic news and earnings.
The Apple Watch is on all the websites today, and everyone buzzing about the 18K gold version that costs from $10,000 to $17,000 and supposedly has 1/2 oz of gold (it’s uncertain if that half oz weight is how much 18K gold it has, or if it is actual gold content.)
We decided to do a little math, and see just how much pure, .9999 gold we could buy for the price of an Apple Watch:
The Apple Watch “Edition” with 38mm face, 18K gold frame, and black sport band retails for $10,000. For that price, you can buy EIGHT 1 oz PAMP Suisse 1 oz gold bars sealed in assay card, and have $204 left over. PAMP Suisse is one of the most famous and trusted names in Swiss gold, and is bar is 99.99% pure, with a serial number inscribed on each bar.
The Apple Watch “Edition” with 38mm face, 18K gold frame, and Bright Red Modern Buckle will run you a whopping $17,000. For that price, you can get this 10 oz PAMP Suisse gold bar with assay card, PLUS four 1 oz PAMP Suisse gold bars as described above, for only $71 more. And let’s face it, if you’re dropping 17 grand on something, another $71 means nothing.
Of course, you’ll be lucky to get half what you paid for these Apple Watches next year, when the new versions come out, while gold is forever. Which would you consider a better investment, bullion or bling?
Public pronouncements by Federal Reserve officials have markets readjusting their guesses as to when the first increase of interest rates from near-zero will occur. This is putting wind beneath the wings of the U.S. dollar, which reached as high as 99.99 on the DXY index before the opening bell in New York.
This put pressure on gold, which is denominated in dollars, as well as pushing the euro under $1.06.
Wall St is very volatile this morning, opening up slightly and immediately dropping, only to pull back up into positive territory. The dollar was flat in Asia overnight, but caught a pre-dawn rally to open in New York over the 99 mark on the DXY index. Despite this strength, gold is proving stronger as buying on yesterday’s dip is leading to positive momentum
Slightly better than expected first-time jobless claims, and a perceived hawkishness in the FOMC March meeting minutes released yesterday have revived the fortunes of the U.S. dollar. It was revealed that more than one Fed official wanted to go ahead with a June rate hike, while others wanted to wait until autumn, and couple even wanted to wait until next year.
The dollar is showing positive, but volatile action this morning oscillating between 98 and 98.5 on the DXY dollar index. Stocks on Wall St. are showing similar skittishness, jumping at the open on the first-time jobless report, then dropping into negative territory.
Gold is down moderately, after seeing pressure in Asia, recovering above $1200 in London, then dropping on the U.S. labor data