Gold Recovers On Brexit Declaration

March 29th, 2017 by

brexit-1462470589paaGold prices are trading near unchanged this morning, reversing early losses as British Prime Minister Theresa May officially triggered the process for the UK to leave the European Union. The pound and euro are both only modestly lower, while the jump in the beleaguered US dollar back above 100 on the DXY index is mostly from a set of upbeat economic data combined with oversold condition of the greenback.

Another impetus for dollar gains came this morning, as Boston Federal Reserve president Eric Rosengren gave a more full-throated response supporting future Fed rate hikes. He said he would like to see three more rate hikes this year, occurring every other meeting. That would mean rate hikes in June, September, and December. These are the meetings when Fed Chair Janet Yellen conducts a post-meeting press conference, making them logical times to raise benchmark interest rates.

On Wall St, blue-chip stocks are being hammered for yet another day, with the Dow Industrials trading 50 points in the red. A rally in oil prices, caused by a larger than expected drop in crude inventories, is boosting the energy sector and helping limit losses. That oil rally seems to be helping the S&P 500 more than it is the Dow.


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