Metals consolidated overnight, as some players took recent profits, but were buoyed by this morning’s final revision to first quarter GDP. From barely positive, to -1%, the final number is a huge -2.9% GDP for 1Q14. This is the biggest drop in GDP since the depths of the financial crisis in 2009. Personal expenditures, which constitutes a large portion of the economy, was chopped by 2/3, from 3.1% to 1%.
Metals are near unchanged in New York trading, as durable goods orders for May were reported at -1%. This was caused mainly by a drop in civilian aircraft orders and military spending. This lent support to precious metals.
The dollar was smacked down to a one-month low on the release of the GDP numbers, briefly touching 80.1 on the DXY index before struggling upwards. It is still down -0.20% this morning.
Money jumped into Treasuries after the GDP report, pulling yields down. Stocks are mostly in the red world-wide, with Wall St. opening down, spiking up, then right back down to near unchanged.
Terrorist army Islamic State of Iraq and the Levant (ISIL), also known as Islamic State of Iraq and Syria (ISIS), tightened control of their trans-national Sharia empire today, as fighters of the official Al Queda group in Syria who held a town and checkpoint on the Syria/Iraq border pledged allegiance to ISIL. Al Queda’s official presence in Syria is the Nusra Front, and has for months been cooperating with moderate rebel groups to beat back ISIL’s advances. ISIL was kicked out of the Al Queda network for being too brutal even for them.