This morning finds gold lower, giving up yesterday’s safe haven gains. Spot gold is consolidating around support at the $1,069 level. Tensions over the shootdown of a Russian fighter jet by the Turkish air force has subsided, letting Russian and European stock markets recover.
A surging dollar on the back of a falling euro also has gold lower this morning. ECB president Mario Draghi dragged the euro down to below the 1.05 mark, with statements pointing toward an expansion of ECB QE. This is allowing the dollar to make another run at the psychologically important 100 level against a basket of currencies.
A raft of mostly-good economic data in the US is also helping the dollar, as well as equities. Stocks are extremely volatile this morning, as thin volumes let even medium-sized bids pull the entire index up and down. This is leading to a rollercoaster ride on Wall St. this morning.
First-time jobless claims fell by 12,000 last week, to 260,000. This is yet another chip in the “Fed will raise rates next month” pile. Personal income was up 0.4%, as expected, but personal spending was down as people saved more.
Spot gold closed at $1,075 yesterday, gaining nearly $7. This morning finds gold lower, retesting support at $1,069, near Monday’s close. That $1,069 level is first support, back-stopped by $1,063. Yesterday’s close at $1,075 is first resistance.
On the retail front, The US Mint announces that the 2015 American Gold Eagle 1 oz coin has sold out. This follows sellouts of the 1/4 oz and 1/10 oz 2015 Gold Eagles, leaving the 1/2 oz coin the only one still in stock at the Mint.
In related news, the US Mint announced that production of the 2015 American Silver Eagle would cease in the week of December 7th, so that retooling and production of the 2016 ASE could begin for the January roll-out. The last disbursement to distributors will be Monday, December 11th. As of this morning, the Silver Eagle is only 155,000 from a new all-time sales record. This will be the third year in a row that the ASE has broken sales records, and the fourth time in the last five years that sales have exceeded 40 million coins.
Don’t expect any stability in any market for the rest of the week. All markets are closed tomorrow for Thanksgiving, and Wall St will close at 1pm on Friday (as if anyone will actually be at work except interns.)
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