Gold and silver are steady this morning, after the financial press’s coverage of an “insider’s” report predicting further tapering by the Fed led to moderate drops in the precious metals yesterday. Platinum is posting gains, as strikes in South Africa are poised to begin tomorrow, and palladium is recovering from overnight weakness.
The $1,237 level has held during gold’s last two retrenchments, which bodes well for yet another run at the stubborn $1,255 level.
The dollar is weaker after showing strength in Europe, as unemployment data in the UK sends the pound to one-year highs versus the euro. Unemployment in Britain is at five-year lows, as Old Blimey outpaces the rest of Europe in economic recovery.
Wall St. had a lackluster open as IBM and Coach missed earnings expectations, and the market tries to regain the exuberance that propelled it to new highs on an almost daily basis in the last half of 2013.
European stocks made another run at recent highs, but didn’t quite make it as mixed earnings reports sapped the rally. Chinese stocks were up sharply, as the central bank acts to moderate interbank lending rates. This also pulled the Hang Seng in Hong Kong higher. In Japan, the Nikkei eked out a small gain, as investors were disappointed that the Bank of Japan did not expand easy money policies.