Gold prices are modestly higher this morning, after hitting an eight-week high near $1,210 an ounce overnight. Volumes are light today, as US markets are closed for the Martin Luther King Jr. holiday. Both spot gold and February COMEX gold futures are trading $7 an ounce higher in early trading. All other precious metals are trading flat on the spot market. Silver is around $16.81, platinum is at $981.00, and palladium is trading near $748.00.
Gold prices lost their overnight grip on $1,200 this morning, after wholesale prices and December retail sales lifted expectations for inflation and economic growth in 2017. Gold prices were trending around the $1,190 mark, which put spot gold more than $5 lower, before recovering to $1,194/oz. February COMEX gold futures were meanwhile down around $9. Both spot and futures prices gained a bit more than $3 an ounce on Thursday.
The precious metals are showing solid gains across the board this morning as Wall St is experiencing its worst open so far in 2017. Meanwhile, gold prices, which topped out at a seven-week high of $1,199.40 after President-elect Donald Trump’s press conference yesterday, gained that extra step and moved as high as $1,206 an ounce overnight. Spot gold in New York this morning is trading nearly $12 an ounce higher (+1%) to $1,203/oz, while spot silver is up 1.1% to $16.89/oz.
This year, three of the four rotating seats on the Federal Reserve Open Market Committee have been filled by the three newest regional Fed presidents: Robert Kaplan of the Dallas Fed, Patrick Harker of the Philadelphia Fed, and Neel Kashkari of the Minneapolis Fed. This will be the first time any of the three have wielded a vote in the most powerful monetary committee in the world. More tellingly, none of the three are economists.
Gold prices are lower this morning in New York after touching a six-week high in early trading. Some activity can also be attributed to profit-taking, as the precious metals sector has started 2017 with a roar.
Have sprawling precious metals conglomerates become too unwieldy and inefficient to provide stakeholders with the best value possible?
Former McEwan Mining president Ian Ball thinks so. He advocates a “back to the future” approach to precious metals mining that boils down to a single phrase: “One company, one mine”.
The precious metals are modestly higher to unchanged this morning after yesterday’s healthy gains. Key outside markets this morning include the US dollar, which overcame losses in Europe to regain yesterday’s closing price; and oil futures, which are seeing slight gains after plunging 4% on Monday.
One of the many populist stances that Donald Trump took during the election was that the Federal Reserve should at least be audited and held accountable for its actions, and perhaps be abolished by Congress. Trump, who whipped up a frenzy of anti-Fed sentiment on the campaign trail, may feel he now has to follow through on his promises.
The U.S. dollar has given back all of Tuesday’s gains this morning, which is giving a lift to precious metals, oil, and stocks. The DXY dollar index has fallen from its Tuesday close of 103.21, to trade at yesterday’s open of 102.83. Spot gold hit a high of $1,168 per ounce overnight, and is trading around $1,165/oz this morning. Spot silver is seeing minor gains this morning, after closing yesterday up 2.46% to $16.27/oz.
Gold prices have given back modest gains this morning, as a suddenly stronger dollar is pressuring commodities. Spot gold has slipped back to unchanged, while spot silver prices have gained nearly 1% to climb back above the $16 mark. The PGMs are up sharply, with platinum up by $34 an ounce (+3.77%) and palladium up $30 (4.42%).
Gold prices ended 2016 on an up note, closing 8% higher for the year. This is the first year since 2012 that gold has posted an annual gain, lending hope that a long-term bottom has been found in the market. Silver also recorded an annual gain, rising 14% for the year. Markets in London and New York are closed for the New Year’s holiday, making for very light economic news.
A softer dollar this morning is boosting precious metals, as markets enter the last two trading days of the year. Spot gold prices are modestly higher around the $1,145 mark, after hitting $1,150 an ounce overnight. Spot silver is marginally higher in New York, after giving up most of its overnight gains.
Gold prices are just above unchanged this morning after hitting a two-week high overnight. February COMEX gold futures closed $5.10 higher yesterday, and spot gold closed $10.00 higher, in spite of a slightly stronger dollar. The dollar is seeing substantial gains this morning, putting heavy pressure on precious metals.
Precious metals are seeing bids this morning after languishing near 10-month lows over the Christmas holidays. Gold is up more than 1% from Monday’s close as markets open in the US. Silver and palladium are following gold upward, while platinum is slightly lower. The dollar is having next to no effect on commodities this morning, signaling that this morning’s movements are purely market-driven. European demand is muted today, as London bullion markets remain closed for Christmas.
Trading in Italy’s Monte dei Paschi di Siena bank was halted indefinitely by government regulators late Thursday, after shares fell 7.5%. Markets were reacting to news that the troubled bank’s last-ditch effort to remain solvent had fallen through. The nation’s third-largest bank, the 544 year-old Monte dei Paschi will now be nationalized by the Italian government, in the largest such operation since the 1930s.
Economists across Europe have long feared that the failure of MdP would set off a landslide of Italian bank failures that would in turn plunge the Eurozone into another financial crisis. €360 billion in bad loans are held by Italian banks, one-third of all bad loans in the European Union.
Markets are closed in Europe and the US today, as traders enjoy the last day of the three-day Christmas weekend. Not only are stocks and bonds spending another day at Friday’s closing prices, so are precious metals.
Gold and bonds took advantage of a slightly weaker dollar Friday to book modest gains, as year-end book squaring is drawing energy out of the Trump Rally in the stock market.
Gold prices are up slightly this morning, as markets wind down ahead of the Christmas weekend. Many traders are taking today off, stretching the three-day holiday to four days. Aside from some window dressing by fund managers, activity should remain quiet through New Years.
Gold prices, as well as foreign currencies and any commodity priced in dollar terms, are lower as the US dollar hits fresh 14-year highs on Tuesday morning. Gold has been pushed down to new 10-month lows, while silver is recording new 8-month lows.
The pound, euro, and yen are all down versus the dollar, while stocks on Wall St and crude oil prices opened higher.
Gold prices are seeing support from a weaker dollar, as spot prices trend near ten-month lows hit on Friday. Silver prices are seeing modest gains this morning, with prices back above $17 an ounce. The big news this morning is a successful agreement between OPEC and select non-OPEC oil producers to cut production. The resulting boost to oil prices is expected to increase inflation pressures across the globe.
Gold prices gave up slight gains this morning after being trampled by a sudden sharp rally in the dollar. Most of the attention was on the ECB this morning, however. European Central Bank president Mario Draghi announced an extension of the bank’s bond buying scheme past the March 2017 deadline, and promised additional stimulus if needed.