Gold prices are trading nearly unchanged from yesterday’s close this morning, after rising as high as $1297 an ounce early Monday. That safe haven spike triggered some profit taking, which brought spot gold down to close at $1,284 even. Silver prices followed much the same trajectory, and are trending marginally lower than yesterday’s close.
The woes of Venezuela’s state-owned oil company PdVSA exploded onto the Washington, DC political scene this week, when doubts surfaced that it could meet a $2.2 billion bond payment due on April 12.
Part of that total due last Wednesday included a payment on a $1.5 billion loan from Russian oil giant Rosneft. The Venezuelans put up a 49.9% stake in their US subsidiary Citgo as collateral. Had the Venezuelans not made that payment, the Russian government could have suddenly found itself the proud owner of 4% of America’s oil infrastructure.
Gold prices are holding on to yesterday’s $20 in gains this morning, as tensions on the Korean peninsula ratchet ever-higher. North Korean dictator Kim Jung Un and US president Donald Trump continue to taunt each other in press releases and on Twitter, as a US Navy carrier battle group heads to the eastern coast of Korea. Gold is now trading at its highest level since before Trump’s victory in last November’s presidential election.
Indian gold demand is sharply higher right now, due to Hindu New Year festivals and the upcoming spring wedding season. A stronger rupee, which has gained 4.8% against the dollar so far this year, has helped moderate gold prices and stoke demand, and a good monsoon season last year has given rural Indians the money to buy.
American Silver Eagle sales for the first quarter of 2017 totaled a bit over 7.9 million coins, the slowest start since 2009. Considering that the first quarter is usually the most active time for Silver Eagle sales each year, current demand is pointing toward 2017 being the lowest mintage in at least six years. This poses the question: Will 2017 be a semi-key, or even key date for the American Silver Eagle?
Gold saw a small pop in early New York trading this morning, lifting prices to just above unchanged. This is a muted response to Thursday’s big losses, which had spot gold finish the day down by $11 an ounce.
Markets across the board will be influenced by the fact that today is the last day of the week, the month, and the first quarter.
Gold prices are trading near unchanged this morning, reversing early losses as British Prime Minister Theresa May officially triggered the process for the UK to leave the European Union. The pound and euro are both only modestly lower, while the jump in the beleaguered US dollar back above 100 on the DXY index is mostly from a set of upbeat economic data combined with oversold condition of the greenback.
According to the US Geological Survey (USGS), global silver production totaled 26,800 metric tons in 2016. Fully 80% of the world’s silver was produced by only nine countries: Mexico, Peru, China, Chile, Australia, Poland, Russia, Bolivia, and the United States.
The victory of the Liberal Party in last Wednesday’s parliamentary election in the Netherlands led to elation, if not jubilation, among establishment politicians throughout the European Union. The far-right Freedom Party (PVV), led by the incendiary Geert Wilders, did not gain as many votes as pollsters predicted, but still managed to gain five seats to become the second-largest party in the Dutch House of Representatives.
Precious metals continue to surge this morning, adding to substantial gains Wednesday afternoon. Gold prices rocketed $30 higher since the Federal Reserve Open Market Committee meeting yesterday, in a “sell the rumor, buy the fact” trade that was anticipated by some market watchers.
Silver is following close behind, having gained 50 cents an ounce the last two days.
Gold prices spiked to 3-1/2 month highs this morning, touching the important $1,250/oz level as successive buy stops were triggered. Silver is also trading at a 3-1/2 month high. The dollar was down three-tenths of a percent, as a jump in first-time jobless claims was seen as a bearish factor for the Federal Reserve’s next interest rate hike.
Canadian junior gold miner Klondex has transformed itself into a leader in narrow vein gold mining over the last five years. The company’s specialty is now buying failed mines from creditors, then returning them to profitability using that narrow vein expertise.
This focus has seen the company rise from the bottom of the junior mining heap on the Toronto Stock Exchange to the best performing stock on the S&P/TSX Composite Gold index, gaining 22% in the six months ending 2016.
Gold is trading at its Thursday highs this morning, bucking headwinds from a moderately higher dollar. Stocks opened lower this morning, as the market seems exhausted from its recent record-setting rally. The precious metals are seeing some safe-haven demand out of Europe today, as the possibility of the far-right politician Marine Le Pen’s chances of winning the French presidential election seem to be growing.
Precious metals ran into selling pressure this morning in New York, as a raft of economic reports surprised to the upside. Faced with evidence of a robust economy on several fronts, markets have doubled the odds of a March rate hike by the Fed. This sent the dollar and bond yields higher while weighing on gold prices.
Gold prices are volatile this morning, as safe haven demand duels with this morning’s Congressional testimony of Federal Reserve head Janet Yellen.
Spot gold was up as much as $10 an ounce in reaction to last night’s sudden resignation of President Trump’s National Security Advisor over his contacts with Russian officials before and after Trump’s victory in the 2016 Presidential election.
Gold prices continue to be pressured this morning, as equities continue to soar after President Trump announced he would soon unveil a “phenomenal” tax cut plan, which it is assumed will included his long-awaited corporate tax cuts. Precious metals received a reprieve at 10 am EST, however, when US consumer sentiment unexpectedly dropped from a 13-year high to a 3-month low.
Donald Trump did this morning what rising stocks and lower jobless numbers could not. Bargain hunters in the gold market were buying on any dips caused by traders booking recent profits, keeping prices near yesterday’s three-month high.
Market fortunes reversed instantly, however, after President Trump made a surprise announcement that he would be unveiling a “phenomenal” plan for tax cuts in the next week or two. This sent spot gold down more than $8 an ounce in a matter of minutes as the dollar and stocks surged.
Gold is sharply higher this morning in New York, hitting a three-month high as it pulls the other three big precious metals along with it. Gold prices began building during early trading in London, despite a rally in the US dollar. The DXY dollar index began falling before the New York open, putting further support underneath precious metals.
Wall Street opened lower, pressured by a drop in oil prices spurred yesterday after the American Petroleum Institute announced a massive 14.2 million barrel build in US crude stockpiles. This was 568% higher than the 2.5 million barrel build that analysts were expecting.
Gold prices seem to be ignoring a better that expected non-farm payrolls report this morning, actually gaining modestly after its release. Looking under the hood past the headline numbers, and noting negative revisions for prior months exposes a payrolls report that famous “Bond King” Bill Gross describes as “schizophrenic.”