Author Archives: Steven Cochran

photo: Gage Skidmore

Gold Drops On Trump’s Tax Promise

February 9th, 2017 by

percent-interest-taxesDonald 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.

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Gold Breaks $1,240 As Dollar Fades

February 8th, 2017 by

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.

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payroll-target

Gold Shrugs Off Payrolls

February 3rd, 2017 by

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.”

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Lithium Startups Challenge Majors

February 2nd, 2017 by

lithium batteries © Macker54321 | Dreamstime.com

© Macker54321 | Dreamstime.com

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.

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dollar-fall-weaker

Gold Gains On Fed, Dollar

February 2nd, 2017 by

gold-victory-stackGold 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.

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Gold Climbs Past $1,200 On Haven Play

January 31st, 2017 by

Precious metals are following gold sharply higher this morning, as growing unrest over President Trump’s declared Middle East immigration ban rattles investors.

pile-of-gold-rally

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.

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global-markets-down

Gold Jumps As Stocks Drop

January 30th, 2017 by

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.

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draghi

Dovish Draghi A Foe of Gold

January 19th, 2017 by

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.

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Gold Jumps On Brexit, Trump Fears

January 17th, 2017 by

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%.

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Wall St takes a break

Gold Gains In Light Trading

January 16th, 2017 by

Wall St takes a breakGold 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.

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dollar

Gold Pulls Back On PPI, Retail Sales

January 13th, 2017 by

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.

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Gold Tops $1,200 After Trump Presser

January 12th, 2017 by

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.

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FOMC conference room (photo: Federal Reserve)

New Faces At Fed Policy Meetings

January 11th, 2017 by

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.

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gold mineworker

Back To The Future For Gold Majors

January 10th, 2017 by

gold mineworkerHave 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”.

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gold bars

Gold Holds Above $1,180

January 10th, 2017 by

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.

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