The markets will turn their attention to Janet Yellen’s speech this afternoon around 3:45 pm ET at the San Francisco Fed. She is expected to offer her personal outlook on the FOMC’s next move and broadly discuss the direction of monetary policy. Gold was falling this morning just below $1,200/oz ahead of Chair Yellen’s speech as some profit-taking on the yellow metal’s rally this week sets in. After trickling lower for most of the week, the dollar has also moved back toward 97.5 on the DXY spot index this morning.
The potential for a full-scale civil war in the Gulf state of Yemen is stoking anxieties this morning for both its geopolitical implications and its possible adverse impact on the oil market. Both crude oil benchmarks were rising fast this morning, advancing over 2% each, while the precious metals were also moving higher–gold surged back above $1,205/oz–with the mounting tensions that the Yemeni situation is generating. Not only is bombing in the country threatening to disrupt crude production, but the conflict could also embroil the major Sunni (Saudi Arabia) and Shiite (Iran) countries in the region in a proxy war.
The precious metals are seeing renewed demand this morning, each rising into the green in early morning trading. After putting together three consecutive days of solid action, spot gold is again approaching the important $1,200 mark after slipping below $1,150/oz as recently as last Thursday. Silver also showed strength, moving up over 0.6% to about $17.10/oz. After a few rough trading sessions, both of the Platinum Group Metals are also advancing this morning. Although U.S. stock indices opened mixed, they are expected to get a boost today from the merger of food giants Kraft and Heinz that is in the works.
Gold was moving slightly higher this morning as the dollar continues to pull back from its recent rally, registering below 96.75 on the DXY index. Spot gold was above $1,192/oz around 10 am EST while silver was hovering around $17/oz. Meanwhile, stocks will look to advance today after Monday saw all three U.S. indices turn negative just at the very end of trading. Equities were down at the opening bell in the States, while in Europe shares were jumping on positive sentiment in the euro area.
The precious metals were steady at this morning’s open after gold and silver posted their best weekly performance since January last week. Stocks opened flat after similarly advancing last week amid global economic uncertainty and the Fed meeting. Silver was quickly about 10 cents (0.60%) higher this morning, moving back toward $17/oz after trading below $16/oz for much of last week. Gold looked to move higher again, sitting steady at $1,185/oz.
Spot gold is pushing a two-week high this morning in New York, set for its biggest weekly gains since January. Equities, commodities, and forex contracts are seeing extra volatility at the New York open, as today is a “quadruple witching day” in the US. Wall St. is hoping that it can regain recent losses after the expected early morning fitfulness subsides.
The precious metals were mixed this morning with silver peeking into the green, while gold and palladium were both marginally lower. Platinum sat at unchanged. The metals will look to carry over Wednesday’s rally, but may be held back by the robust dollar. The greenback was again approaching 99.0 on the DXY index. Similarly, the stock indices were mixed, with the Nasdaq poking into the green this morning while the Dow Industrials and the S&P 500 both opened in the red. Inflation expectations are also being tempered by the renewed slide in oil prices: Brent crude was down nearly 3% this morning at $54.30/bbl while WTI crude slipped 4% to $42.80/bbl.
Both U.S. stocks and precious metals being traded in New York looked to open slightly in the red this morning ahead of the FOMC’s announcement from its monthly policy meeting at 2 pm EST this afternoon. While all eyes are on the Fed in the U.S., European markets are mixed on the ECB’s turmoil with Greece, and shares in Asia continue to rally. Expect a somewhat divergent response between global equity markets and those in the U.S. whichever way–whether hawkish or dovish–the announcement by Chair Janet Yellen is perceived.