The markets were calm for the most part on Wednesday morning as traders were hesitant about making any big moves before today’s release of the most recent FOMC meeting minutes. Spot gold is approaching $1,290/oz this morning while spot silver was up 0.2% to $17.14/oz. Platinum was essentially flat, but palladium jumped 1.7% to $943/oz, retaking the lead over its cousin.
This is the longest winning streak for the precious metals since August.
Tuesday’s closing numbers are below:
Gold: $1,287.50/oz (+$3.90, +0.30%)
Silver: $17.10/oz (+15¢, +0.88%)
Platinum: $930/oz (+$15, +1.64%)
Palladium: $927/oz (+$4, +0.43%)
Dow Jones: 22,830.68 (+69.61, +0.31%)
S&P 500: 2,550.64 (+5.91, +0.23%)
Nasdaq: 6,587.25 (+7.52, +0.11%)
DXY: 93.27 (-0.46, -0.49%)
WTI crude: $50.95/bbl (+$1.37, +2.76%)
After surging back above $50 per barrel on Tuesday, the crude oil market will undoubtedly respond to today’s monthly oil market report from OPEC, as well as the API weekly crude inventories.
Markets were in the green across the board yesterday with the exception of the USD. Interestingly enough, both precious metals and stocks tend to like a weaker dollar. Treasurys saw a slight uptick in demand, as the 10-year yield fell to 2.33%. The dollar lost about 0.2% on the DXY index this morning.
Perhaps the biggest beneficiary of the dollar’s decline was the euro. The common currency moved back above $1.18 this morning after Catalonia stopped short of formally declaring independence yesterday, instead choosing to open negotiations with Madrid. However, the Catalan region is already autonomous for the most part, so observers are unsure of how the push for independence will play out. Many still expect that the Spanish government will simply take full control of the region, which could spark a massive blowback in Barcelona.
The Nikkei in Japan hit a two-decade high, advancing 0.3% overnight to trade at its highest level since 1996. The yen also inched higher. However, the big financial news out of Japan is not the record highs for its stock market, nor the Bank of Japan’s continued easy-money policies, but a scandal involving one of its corporations, Kobe Steel. The firm provides steel for a variety of major industries, including the construction of aircraft. It was caught faking data about the quality of its steel, revealing some of the unsavory business practices of some (but far too many) large corporations.
Back in the U.S., the biggest banks will report earnings today. While strong third-quarter results are anticipated, many analyst are concerned that the uncertain landscape with Congress and the White House, particularly in regard to tax reform, could send financial sector stocks plummeting at some point in the next six months. Traders and investors will also be watching for the FOMC minutes being released later this afternoon.
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.