As U.S. markets reopened on Friday, the precious metals were fairly dormant in early trading. Spot gold lost about $1 this morning to trade at $1,289/oz after touching as high as $1,292 overnight. Spot silver slipped 4¢ (-0.2%) initially before recovering to unchanged $17.08/oz. Platinum was 0.6% higher at $940/oz while palladium tumbled $8 per ounce (-0.8%) to $993/oz.
The dollar slid 0.35% on the DXY index to 92.9, putting the USD on track for its third weekly loss in a row. It also marked a five-week low for the U.S. dollar. Stock markets reopened in the U.S. after the Thanksgiving holiday, trading modestly higher. The Nasdaq inched up to a new record high before the Thanksgiving break. Today’s session will be a short one, as markets in New York will close at 1 pm EST. It will also be dominated by news about the annual Black Friday/Cyber Monday spending splurge by American consumers this weekend.
Shares in Europe fell from early gains while the euro hit a two-month high at $1.19. Despite paring earlier gains, the Japanese yen was close to its own two-month high at ¥111.4 per dollar. Likewise, the pound sterling also approached its highest against the dollar in two months, trading above $1.33.
In Asia, Japan’s Nikkei ticked up to stay on track for a weekly gain, which would mark its 10th week in positive territory out of the last 11 weeks. Shares in Shanghai and Hong Kong surged after slumping lower during Thursday’s session.
Industrial metals were higher on Friday in a general upswing for commodities, no doubt thanks to the weaker dollar. Crude oil continued to trade around a two-year higher as WTI crude advanced 1.4% this morning to $58.80/bbl.
Traders will be watching as several different PMI readings will be reported today. A stronger purchasing managers’ index for the eurozone yesterday has helped lift the economic outlook for the region. A possible resolution of the political quagmire in Germany is having the same effect.
A bombing of a mosque in Egypt that took the lives of at least 184 people and wounded more than 100 others was reported this morning. The massacre was the worst violence the country has experienced in two years. Though unrelated, the attack comes as geopolitics in the Middle East are increasingly focused on the purge and proposed reforms in Saudi Arabia under the leadership of Crown Prince Mohammed bin Salman.
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