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.”
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.