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.”
2017 is shaping up to be the sixth year in a row where lithium production has fallen short of demand. 175,000 metric tons of Lithium Carbonate Equivalent (LCE) was produced in 2016, compared to an estimated demand of 185,000 tons.
With lithium metal prices tripling over the last three years, and electric vehicle (EV) sales set to increase exponentially in the next twenty years, several lithium mining startups are looking to leverage new technology for faster, cleaner extraction of lithium compared to the present global oligopoly that controls the market.
Gold prices are solidly higher this morning, after finishing flat on Wednesday. Spot gold hit a 2-1/2 month high of $1,226 an ounce overnight in London, reaching its highest point since November. Today’s double digit gains has brought out some profit-taking, as expected, but buyers are showing resilience and keeping prices above $1,220/oz. Analysts are watching for gold to close above significant resistance at $1,225 to signal a new leg up in prices.
Spot gold has given up less than half of yesterday’s gains this morning, reacting to a better than expected private payrolls report. Gold is trading near yesterday’s low of $1,203 an ounce. April gold futures are down a similar amount. Spot silver is modestly lower near $17.50/oz after spiking 2.75% yesterday.
Precious metals are following gold sharply higher this morning, as growing unrest over President Trump’s declared Middle East immigration ban rattles investors.
Spot gold is more than $17 an ounce higher at $1,212.50 in early New York trading, with April COMEX futures close behind. Spot silver is up 2.2% to $17.45, with March silver futures also keeping pace. Spot platinum is up $7.00 at $994.00, while April platinum flat. Palladium, which has been the best performing precious metal in 2017 so far, is up nearly 2% this morning to $752.00. March palladium futures are also $14 higher.
Gold prices jumped this morning, reaching for the $1,200 mark after trading flat to start the week. Overnight weakness in precious metals was spurred by upbeat inflation numbers out of Germany, which caused weakness in the euro and British pound. This pushed the dollar into positive territory, limiting the upside for precious metals. Anxiety over possible disruptions of international trade due to protectionist policies espoused by President Trump has both platinum and palladium more than 1% lower in early trading.
Gold prices briefly extended their winning streak to hit a two-month high of $1,219.43 an ounce in London overnight. At the New York open, however, the yellow metal was smacked lower, giving up about $5 per ounce. This has typically been the case when gains are made in Asia overnight.
This morning’s press conference by European Central Bank (ECB) President Mario Draghi sank the value of the euro and boosted the U.S. dollar. The big spike in the dollar immediately hit precious metals, sending gold prices down more than $5.00 an ounce to under the $1,200/oz mark.
This was the second blow of a central banker one-two punch, as hawkish comments by Fed Chair Janet Yellen boosted the dollar yesterday afternoon.
Gold prices are just below unchanged this morning, resisting moderate profit-taking and a rally in the dollar. Rising inflation, which should be a tailwind for precious metals, is having little effect. Spot gold was last down $2 an ounce at $1,214.60. At the same time, February gold futures were up $1.70. Spot silver was flat at $17.19, while silver futures were up 8 cents, (+0.48%).
Gold is leading the charge in precious metals this morning, as markets react to British Prime Minister Theresa May’s speech laying out plans for a “hard Brexit,” and President-elect Donald Trump smashes the US dollar lower by saying that it is too strong.
Spot gold prices are more than $13 an ounce higher, while spot silver is marching above the $17 mark. The Platinum Group Metals (PGMs) are clawing back recent losses, with platinum prices up modestly while palladium is up by nearly 2%.
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.