Gold and silver are mostly steady, though lower, amid yet another stock meltdown in the span of a week.
Platinum dipped $6 per ounce (-0.6%) to $964/oz. It held above palladium, which was flat at $952/oz.
Swift Selloff on Wall St Doesn’t Let Up
Although the precious metals have logged losses during the downturn for stocks, this is primarily a result of investment funds taking profits in gold to make up for the huge drop in the equity market.
Gold has largely stood its ground, providing stability amid the worst week for the stock market in six years.
Prior to this morning’s dip, the yellow metal ended Thursday just slightly above unchanged at $1,318/oz.
The Dow Jones is officially in correction territory, down 10% from its highs. For the second time in a week, the Dow suffered a single-day loss of more than 1,000 points.
As a whole, the DJIA tumbled 4.15% yesterday. Only four of the 30 shares listed on the index fell by less than 2%. The “best” performer during the session was the energy company Exxon, which lost 0.83%.
The S&P 500 lost 3.17% and the Nasdaq fell 3.9%.
Traders are not quite in panic mode yet in part because everyone realizes the current nine-year bull market was ripe for a correction.
Wall St rebounded about 0.9% at the opening bell, but intraday volatility has been a common feature since the beginning of February.
Asian markets were dragged sharply lower in last night’s session. European indices were down about 0.75%.
Dollar Sees Its Best Gains Since October
Meanwhile, the DXY index was up marginally on Friday to 90.35.
This sent the euro to $1.225 while the British pound fell below $1.39.
However, the yen was up modestly to around ¥109 per dollar.
The USD is headed for its best weekly performance in more than three months.
Both the dollar and yen are considered safe havens by forex traders when other asset classes are in turmoil.
Bonds fluctuated in many Western countries. The 10-year Treasury yield was down one basis point yesterday but rose three more bp this morning to 2.86%.
Crude oil continued to tumble on signs of production ramping up. WTI crude futures lost 1.3% to drop below $60.40/bbl. Brent crude fell by the same margin, trading shy of $64/bbl.
In politics, President Trump signed a temporary spending bill this morning to end the second government shutdown of the new year, which was so brief hardly anyone noticed it happened.
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.