Precious metal prices rose today despite a steady U.S. dollar.
The gold price inched 0.1% higher Wednesday, up to around $1,305 per ounce.
Silver prices jumped 1.3% (+21¢) to $16.35/oz in early action.
Palladium also surged, adding $24 (+2.5%) to trade back at $965/oz.
Platinum was mostly unchanged just above $890/oz.
Even as gold prices have been stuck between $1,300 and $1,350 for the past four months, gold ETFs have consistently seen strong inflows so far this year.
ADP Payrolls, Apple Earnings Exceed Expectations
The ADP payrolls report showed 204,000 jobs were added in the U.S. during April.
It was the sixth straight month of private-sector job growth above 200,000.
Continued strength of the labor market has provided part of the rationale for the Fed’s gradual normalization of interest rates.
This month’s FOMC meeting concludes this afternoon, but no rate hike is expected until June.
Bonds were down around the globe.
The 10-year T-note yield rose almost four basis points yesterday to 2.97%. However, the yield curve continues to flatten as the 2-year Treasury bill yield hit a nine-year high.
Meanwhile, the U.S. government continues to aggressively issue new bonds to cover the widening budget deficit.
Stocks on Wall St were mixed but mostly unchanged this morning.
The Dow Jones ended in the red for the third straight session on Tuesday. Both the S&P 500 and the Nasdaq closed higher.
Shares of tech giant Apple got a lift after the company beat profit estimates and announced plans for a $100-billion stock buyback.
Greenback Finally Breaks Even YTD, Oil Slides
The dollar’s recent rally has pulled the currency into positive territory year-to-date for the first time in 2018.
Forex markets saw almost no movement in early trading Wednesday. The pound sterling was flat at $1.36 and the yen held at ¥109.9 per USD.
The euro slipped 0.2% to remain below $1.20, matching its 2018 low. The DXY index was also off about 0.1% to 92.35 this morning.
Despite production cuts by OPEC members staying in place, global output has been strong. The Energy Information Agency (EIA) reported that oil production in the U.S. is currently at an all-time high, rising above 10 million barrels per day.
Trade news has focused on American tariffs, especially against Chinese imports, but animosity between the U.K. and EU hasn’t abated, either.
The uncertainty over how customs will be assessed on goods flowing between Britain and Europe after Brexit is finalized could threaten the future of U.K. Prime Minister Theresa May’s government.
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