Spot Gold At $1,270 After Selloff

October 3rd, 2017 by

The gold market was holding in place during early trading on Tuesday, finding solid footing after more than a week of downward movement. Spot gold was unchanged at $1,270/oz this morning, while the silver price added 5 cents (+0.27%) to cross back above $16.60/oz.

Platinum and palladium were each down just $2 this morning. After palladium got hammered during Monday’s trading session, the metal is once again short of platinum.

Here’s a look at Monday’s closing numbers:

Gold: $1,270.40/oz (-$9, -0.70%)
Silver: $16.56/oz (-7¢, -0.42%)
Platinum: $911/oz (+$1, +0.11)
Palladium: $902/oz (-$26, -2.80%)

Dow Jones: 22,557.60 (+152.51, +0.68%)
S&P 500: 2,529.12 (+9.76, +0.39%)
Nasdaq: 6,516.72 (+20.76, +0.32%)
DXY: 93.62 (+0.50, +0.53%)
WTI crude: $50.57/bbl (-$1.10, -2.13%)

Stocks pointed toward fresh all-time highs again on Tuesday morning, as all three major U.S. indices opened in the green. Investors are simply becoming more upbeat about the economy and the outlook for equities now that Congress seems to be tackling some form of tax reform. However, some bears on Wall St see the current rally as the peak before a reversal in direction. Depending upon how quickly—and successfully—the proposed tax cuts are enacted, as well as how third-quarter earnings shake out, we could see a steep decline for stocks at some point in the fourth quarter.

The dollar opened flat on Tuesday, holding just above 93.5 on the DXY index. Naturally, this meant muted action against the dollar for the world’s other major currencies. Bonds finally saw a bit of demand after a week of strong selling pressure. This pushed the 10-year Treasury yield 1 basis point lower to 2.34%. Stocks also traded higher in Europe.

Aside from trying to figure out tax reform, the White House is also facing questions about the relief and aid being distributed to the devastated Caribbean island of Puerto Rico, which is a U.S. commonwealth. President Trump is on his way to visiting the island in the wake of Hurricane Maria. Although his political opponents at home have been critical of the president’s and FEMA’s response to the natural disaster, sentiment in Puerto Rico itself is generally that the authorities have been doing the best they can to handle a tragic situation.

In other news out of Washington, the credit reporting firm Equifax will receive a tongue-lashing from Congress when the company’s CEO testifies on Capitol Hill multiple times this week. Equifax recently revealed that it was the victim of a cyber hack last year, potentially compromising the security of the personal information of nearly 150 million Americans.


The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product.