Gold Market Cools Off After Irma

September 12th, 2017 by

After a weekend where much of the country was glued to their television screens to watch the progress of Hurricane Irma through Florida, much of the state is returning to some sense of normalcy as clean-up and recovery efforts begin in earnest. Some areas are still without power, and while most of mainland Florida survived with only minimal upheaval, the Caribbean islands and Florida Keys were hit hardest by the storm, sustaining a great deal of damage during Hurricane Irma.

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With the storm continually weakening and moving north, investors attention is returning to regular activity in the markets. The gold market has cooled off since last week, sending spot gold below $1,330/oz on Tuesday morning. Spot silver was flat at $17.75/oz in early trading. Platinum lost 0.8% while palladium was up by roughly the same margin.

Monday saw stocks in the U.S. rally better than 1%. Stock indices around the world are trading near record-highs. Part of the rally is due to President Donald Trump approving additional funding for the hurricane stricken areas of Texas and Florida. Reuters reports that increased government spending in the wake of a natural disaster is typically a boon for riskier assets like stocks. It’s also been suggested that, in the absence of any bad news, stocks will continue to rally even without any clear positive catalyst.

As Irma begins to pass, Treasurys recovered from the surge in demand seen just before the storm hit. This has lifted the 10-year T-note yield back to about 2.15%. The dollar was also up slightly on Tuesday, but still lagged around 92.0 on the DXY index. Crude oil prices were unchanged this morning at $48 per barrel for West Texas Intermediate (WTI).

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Many in the financial markets are preparing for the exciting unveiling of not just one but¬†three¬†new iPhone products by Apple, Inc. today as the company seeks to boost growth in its mobile phone business. One of the new phones is reportedly being touted as the “iPhone X.” Despite their widespread popularity and high customer satisfaction, iPhones still primarily appeal to the high-end of the mobile device market, with rival developer Android dominating the broader cellular phone space.

 

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.