The precious metals lost ground again on Wednesday morning as the markets salivated at the February ADP payrolls report, which exceeded all expectations. This drove outflows from gold-backed ETFs and has undoubtedly prompted many traders to close their long positions in gold futures. This dragged spot gold down by about 0.6% to just under $1,210/oz. Meanwhile, spot silver sank more than 1% to $17.30/oz, a five-week low.
From the time that gold prices dropped following the U.S. elections to their recent lows under $1,200/oz, gold mining companies saw a promising year end on a sour note in 2016. Many of the industry’s biggest players have staged major turnarounds to start this year, however.
Traders continued to secure profits from the recent rally in precious metals, as they have in other sectors of the financial markets. Spot gold fell through an important support level on Tuesday morning, losing 0.6% to slide below $1,220/oz by 10 am EST. This has actually coincided with a similar sell-off in stocks and bonds for the fourth straight trading session.
While Wall St traded between 0.1% and 0.2% below unchanged, the silver price tumbled 1.5%—shedding over 25¢ per ounce—to about $17.50/oz. Spot platinum similarly fell 1.5% while palladium recovered to unchanged ($770/oz) from about 0.8% lower.
India is almost always one of the top two nations (along with China) in terms of gold demand on a year-to-year basis, but government intervention has played a major role in actively suppressing that demand over the past year or so.
Gold and silver prices started the week lower as the precious metals are charting a churning pattern of mostly sideways action of late. As of 11:00 am EST, spot gold was down 0.45% to just below $1,230/oz in New York while spot silver slid 0.8% to trade right at $17.80/oz.
This gradual consolidation is not entirely surprising given the nearly unanimous notion that the Federal Reserve will imminently be raising interest rates. What is surprising is that the metals have held onto almost all of their early-year gains in the face of a strong U.S. dollar.
Interestingly, however, gold futures for April delivery were actually up 0.5% on Monday.
President Donald Trump has promised, both while on the campaign trail and since he’s been in office, to aggressively pursue tax reform. This has been a key GOP priority for decades: the last major tax reform undertaken by Congress came under the Reagan administration in 1986.
However, the squabble over how the tax code ought to be reshaped has thrown a wrench into the process. Now, it increasingly looks like the administration and Congress may not deliver on Trump’s tax promise before the year’s end.
Friday morning saw a swift selloff of precious metals as investors continue to anticipate improving economic performance and higher interest rates in the U.S. The gold price slipped about 0.7% in early trading, falling below $1,230/oz. Spot silver was mostly flat, hovering around $17.70/oz. Platinum and palladium each lost ground, as well.
The effects of a stronger dollar and a tightening labor market weighed on gold prices this morning, pushing the precious metals into negative territory on Thursday morning. Spot gold lost about 0.75% after the opening bell in New York, sliding to $1,240/oz. Spot silver was down about 7¢ to trade at $18.32/oz.
Platinum prices slumped about 1.8%, falling below $1,000/oz, while palladium was flat.
Traditionally, since at least the Great Depression, the U.S. government has consistently discouraged (at times, outright prohibiting) its citizens from owning gold. There are a number of reasons for this.
There was mixed action in the precious metals markets this morning as investors seem to be responding to the positive reviews of President Trump’s first speech before Congress last night. Stocks were higher in the U.S. on Wednesday morning, joining most of the global exchanges abroad. Hawkish rhetoric from the Federal Reserve about its plans for raising interest rates are also being taken seriously, dampening some of the appeal of holding gold.
On Wednesday morning, spot gold was down 0.3% to $1,244 per ounce, still unable to push through resistance at the $1,260/oz level. However, silver prices actually added 0.4% to continue trading near $18.40/oz. Platinum and palladium were likewise mixed.
The precious metals repeated their morning performance from yesterday on Tuesday, steadily recovering from overnight losses to push gold prices right back at $1,257 per ounce. The yellow metal was up more than $4 after giving up the similar gains the previous day at the end of Monday’s session. Spot silver added 16¢ an ounce (+0.9%) to $18.40/oz on the nose. Platinum and palladium were mostly flat.
Equities in the U.S. and around global exchanges traded in negative territory on Monday, apparently carrying over the downward bias shown on Friday. The precious metals, meanwhile, were all higher in early trading, led by the Platinum Group Metals.
Many people collect gold and silver items that incorporate medallic artwork but are not technically coins. More obscure than numismatics proper, this field of exonumia offers a rich diversity of styles. Exonumic items are often historical in nature, which also ties them closely to coin collecting.
The precious metals looked to end the week on a positive note after continuing to rally the past several trading sessions. Spot gold briefly touched as high as $1,260/oz overnight before moving back to about $1,255/oz due to some profit-taking this morning. The yellow metal is still trading about $5 per ounce higher in New York.
Meanwhile, both Platinum Group Metals added over 1% while spot silver rose 12¢ an ounce to break above $18.25/oz. This represented 14-week highs for both gold and silver.
Platinum and palladium are grouped together with the precious metals, and they certainly enjoy a modest level of demand from investors looking for the diversity of a tangible asset. However, these two commodities are also appropriately classified as industrial metals—the primary industry using them being the manufacture of automobiles.