Spot gold opened 0.3% above unchanged at $1,328/oz after inching slightly higher during after-hours trading.
Gold futures held near a five-week low.
The silver price was also modestly higher (+0.5%) near $16.66/oz.
Platinum was largely flat at $924/oz. Meanwhile, palladium continued its slump, losing $11 (-1.1%) to $965/oz.
Bond Yields and Housing Prices Take Center Stage
The 10-year Treasury is still approaching the psychologically critical 3.0% yield, but apparently lost steam just shy of this level.
However, T-bills with shorter maturities have seen an even faster surge in their yields.
James Bullard, president of the St. Louis Fed, even warned that the yield curve could invert in the next year or so.
An inversion of the yield curve means that short-dated bonds would actually have higher yields than their long-dated counterparts. Although rare, this scenario is considered a precursor to a recession.
The big economic news on Tuesday was the release of the S&P/Case-Shiller home price index.
National home prices in the U.S. rose by the most in four years, accelerating 6.3% year-on-year on February. A narrower index of prices in 20 major cities was up 0.8% last month when seasonally adjusted, and 6.8% higher year-on-year.
It was the first time that the core 20-city index tracked by Case-Shiller has matched its 2006 peak since the financial crisis.
Stocks were mostly flat on Wall St yesterday. The Dow Jones logged its fourth consecutive losing session.
The S&P 500 also remains in correction territory (10% below its previous high). It’s the longest such stretch since March 2008.
Elsewhere, even as regulatory scrutiny of cryptocurrencies continues to close in, Bitcoin traded back above $9,300 on Tuesday.
Better-Than-Expected Earnings Propel Wall St Higher
U.S. indices opened up about 0.2% this morning.
Markets were digesting strong earnings from Alphabet, the parent company of Google. Its net profit jumped 73% compared to the same period last year.
Several other big firms, including Caterpillar, Lockheed Martin, and Verizon also beat earnings expectations.
Stocks rallied in Asia overnight. The Topix index in Tokyo closed up 1% and the Shanghai Composite rose by better than 2%.
European shares were just barely in positive territory on Tuesday.
The euro and pound were barely higher in early trading. The dollar eased from a three-month high earlier this morning, but continued to trade above 90.9 on the DXY index.
The yen fell 0.3% to ¥109 per dollar.
Oil prices were steady after rallying on Monday. Brent crude briefly broke above $75/bbl before sliding back. WTI crude traded above $68.60/bbl.
Tragically, at least ten people were left dead and more than a dozen were injured when a white van purposely ran over pedestrians in Toronto yesterday afternoon.
The driver was quickly apprehended. Potential links to terrorism are still being investigated.
On a lighter note, President Macron of France is attending the first state dinner hosted by the Trump administration tonight. Germany’s Angela Merkel is also scheduled to visit the White House later this week after she hosted India’s prime minister Narendra Modi.
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.