After a surprising run to start 2014, hitting a three-week high and surviving a take-down attempt yesterday that saw 400,000 ounces of gold sold in 1 second, gold (and silver) is finally seeing some corrective action in New York. Gold prices had stabilized at 10 am Eastern at the 1,228.50 mark, down $10 an ounce.
The platinum group metals are only slightly off yesterday’s levels, as strikes loom in primary platinum producer South Africa.
Wall St. opened higher after 3 days of losses. as the U.S. trade deficit shrank to the narrowest in four years. The correction in precious metals this morning comes as the dollar gains against all major currencies but the yuan.
In Asia, the Nikkei was down over yesterday’s weak economic data from the U.S. which saw disappointing service sector production. European stocks did well, as unemployment in Germany showed a surprise decrease, and Ireland show a healthy appetite for its first post-bailout bond sale. Portugal and Spain also saw debt costs drop.
Markets will be a bit antsy ahead of tomorrow’s release of the Federal Reserve Open Market Committee meeting minutes, where we will get an inside look at the factors that led to the announcement of the proposed tapering of the Fed’s $85 billion a month in bonds and mortgage-backed securities by $10 billion (12%.)