In defiance of a number of encouraging economic data points coming out on Friday, the gold price held onto its overnight gains, trading about $11 per ounce higher this morning around $1,267/oz.
Spot silver gained more than 20¢ an ounce to $17.33/oz, while platinum and palladium were each up well over 1%.
Thursday Closing Numbers
Here’s how the precious metals ended yesterday:
Gold: $1,255.40/oz (-$3.20)
Silver: $17.11/oz (–10¢)
Platinum: $946/oz (-$3)
Palladium: $770/oz (+$6)
Gold and its precious metal counterparts managed to rally higher in early trading on Friday despite a stronger-than-expected revision of first-quarter GDP. This was the second estimate for Q1 GDP in the U.S., and the 0.7% number originally reported was revised sharply upward to 1.2%. Although this is still not a particularly impressive rate of growth, it definitely raises some eyebrows when the initial estimate was apparently off by 0.5%.
The precious metal market largely shrugged off the GDP number, as gold remained in positive ground even as the GDP revision helped lift the dollar from earlier losses to 0.2% higher on the DXY index, registering at 97.45.
However, this may have something to do with the fact that durable goods orders tumbled to a five-month low according to data released Friday by the Department of Commerce. It was actually the first time in five months that orders had fallen. Equities were choppy in early trading in the U.S. and were largely in negative territory in Europe and abroad. Stocks in the U.S. posted their sixth consecutive winning session on Thursday, which saw both the Nasdaq and S&P 500 close at new record-highs.
Crude oil prices once again took a nosedive, as WTI crude fell as low as $48 per barrel. Although OPEC announced an extension of its production cuts for 9 more months, the markets apparently expected the oil cartel to act even more aggressively to support prices. After the initial unfavorable reaction by oil traders, prices recovered about 0.4% on Friday morning, helping WTI push back above $49/bbl. Brent crude traded near $51.50/bbl.
In terms of international news, fresh posturing against the nuclear ambitions of North Korea are also providing some support for gold prices. President Trump, while wrapping up his diplomatic trip across Europe, offered some tough talk for the North Korean regime, all but guaranteeing that his administration would bring the long-standing issue to a resolution.
“You can bet on it,” Trump said of solving the North Korea quagmire.
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