Gold Caught In Broad Friday Selloff

November 11th, 2016 by

gold-prices-lower-downGold prices were pushed below support levels this morning, as bullion prices were caught up in a broad market selloff ahead of the first weekend in the world of President-elect Trump. Stocks on Wall St opened lower, as end-of-week profit taking sets in after impressive gains the previous two sessions.

Sell stops were triggered in the gold market this morning, steepening early losses. Spot gold is oscillating from $15 down to $23 lower as traders selling off and those buying on the dip tussle back and forth. This makes the third day in a row that gold has lost ground. Spot gold lost $19.30 to close at $1,258.60/oz yesterday, while gold futures settled $7.10 lower at $1,266.40/oz.

Silver prices have been riding copper’s coattails higher the last few days, as the red metal scores record gains. Copper is moving lower this morning along with most other markets, and silver is following. Spot silver was down by more than 3% this morning in early COMEX trading. Like much everything else, base metals are consolidating today after substantial gains.

Pound Gets A Bounce

The British pound has had a rare good week, after a long streak as the worst-performing currency in the world. The pound has been the top-performer in all major currencies since last Friday, and hit a seven-year high versus the euro. Despite the Brexit cloud hanging overhead, the UK isn’t looking so bad compared to next month’s possible collapse of the Renzi government in Italy, and the uncertainty surrounding Donald Trump’s plans once he taking over the presidency.

Bond Bloodbath

bad-dayUS bond markets are getting a much-needed reprieve today, being closed today for Veterans Day. Treasuries could use this three-day weekend to try and catch its breath after the massacre they have suffered since Donald Trump won the election. The huge jump in government spending anticipated from a Trump Administration, and the inflation it will cause, has destroyed the bond market. Globally, bonds have lost $1 trillion in value in the last 4 days.

The huge bond crash in the US has had amplified effects in emerging markets. Traders who had literally scoured the ends of the Earth chasing yield are now abandoning those bonds in favor of higher-paying, safer Treasuries.

Wall St Takes A Pause

stock-exchange-bull-and-bearStocks opened lower on Wall St this morning, digesting huge gains in the Dow and S&P 500 this week. Financial stocks in particular have been on a tear on sentiment that Trump will cancel many regulations affecting banks, such as the Dodd-Frank Act. Energy sector stocks have benefited from Trump’s pledge to open up federal land and offshore leases to coal and oil companies. Construction-related and mining stocks have been boosted by Trump’s call for greater infrastructure spending.

The Nasdaq has not joined the Trump party in stocks. Tech companies are expected to be the hardest hit by expected protectionist policies from a Trump Administration. Renewable energy and electric cars are also expected to suffer from Trump’s “drill baby drill” stand on fossil fuels.

 

The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product