Spot Gold Dips Again, Jobless Claims Fall

February 8th, 2018 by

Gold was down again as markets opened in New York on Thursday.

Spot gold slipped 0.3% to $1,314/oz, a five-week low.

The silver price went the other direction, adding 3ยข (+0.2%) to return to $16.37/oz

Platinum and palladium were both in the red as the sister metals traded in parity with one another just above $970/oz.

The 10-year yield on U.S. Treasurys jumped back to 2.86% today. Investors are weighing the effect of the inevitable increase to the national debt and deficit that the forthcoming spending bill in Congress will surely cause.

Fairly weak demand during a sale of government bonds yesterday was due in part to the vagaries of higher volatility in the markets.

Even though volatility in the U.S. is finally easing from its record highs, there could very well be more turbulence ahead.

Futures on Wall St were higher in pre-market trading yet indices fell at the open. Stocks sank nearly 1% in Europe and were down 0.8% in London.

This morning’s policy meeting for the Bank of England provided hints that the central bank may begin raising rates sooner than expected.

The BOE also revised its growth outlook higher. This helped the pound sterling climb 1.2% to $1.405.

Europe’s common currency was down to $1.229. Meanwhile, the DXY dollar index was off about 0.2% this morning, still trading near a two-week high at 90.1.

Jobless claims fell by 9,000 to 221,000 last week, according to the Department of Labor. These first-time filings for unemployment benefits remain close to their lowest in 45 years (since January 1973).

The better picture given by the four-week average of jobless claims was also down by 10,000, which was its lowest since March 1973.

China’s Shanghai Composite index has lost 6% so far this week. This erased some $660 billion in value for the country’s equity market.

The losses may be associated with the 1.2% drop in the value of yuan.

It was actually the first major correction for Chinese stocks in over two years. However, shares were higher almost everywhere else in Asia overnight.

Elsewhere in the region, an earthquake in Taiwan caused several buildings to collapse, injuring almost 300 people.

The tremor and its series of aftershocks left 10 dead. Several others are still missing.

In commodities, oil prices were mixed. The WTI crude benchmark is trading below $62 per barrel.

 

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.

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