balance of gold and dollar

Gold Prices Rally On Weaker Dollar

November 27th, 2017 by

Monday morning saw spot gold jump $10 per ounce (+0.8%) to nearly $1,300/oz before easing back to about $1,294/oz. The yellow metal hit a six-week high earlier in the session.

Silver prices were largely unchanged at $17.02/oz while platinum ($945/oz, +0.4%) and palladium ($990/oz, +0.1%) both advanced.

balance of gold and dollar

Much of the gains for the precious metals could be attributed to trading losses for the U.S. dollar. The USD was down more than 0.25% on the DXY, registering at 92.5 on the index. This is the lowest reading since at least September.

The yen was also at its strongest against the dollar since September in response, breaking past ¥111 per dollar. The pound sterling was up 0.4% to $1.3375 and the euro added 0.2% to $1.195. On a related note, Bitcoin prices continue to defy gravity and are now approaching $10,000 for the first time ever.

Stocks were sharply lower in Asia overnight as indices in Taiwan and Shanghai sank 0.95% each. Shares traded slightly in the negative in Europe this morning while Wall St opened flat. The 10-year Treasury yield fell one basis point to 2.33%.

WTI crude prices lost 50 cents to trade at $58.50/bbl this morning ahead of the next OPEC meeting in Vienna on Thursday. Thus far, OPEC’s plans to boost oil prices by cutting production have been working; however, because the higher prices encourage increased production from the cartel’s oil-producing rivals in the short-term, the move could ultimately drive prices lower in the medium-term.

In Washington, the Joint Economic Committee of Congress will hear testimony from outgoing Fed Chair Janet Yellen this week. Her replacement, Jerome Powell, will begin his confirmation hearing in the Senate. The chamber will also continue to debate (and possibly vote on passing) a tax cut package this week. Other Fed members will give speeches later this week, including Bill Dudley from the New York Fed, Neel Kashkari from the Minneapolis Fed, and Pat Harker from the Philadelphia Fed. In other central bank news, the Bank of England will conduct stress tests for the country’s banks this week.

Of course, everyone will be shopping online today with a number of Cyber Monday deals still available.

 

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.