Gold finally broke a three-day losing streak on Thursday. However, spot gold opened flat at $1,310/oz in choppy trading for the yellow metal this morning.
The silver price was likewise flat, opening around $16.40/oz.
Platinum dipped 0.2% to $900/oz even. Meanwhile, palladium was near unchanged at $960/oz.
The gold market is headed for about a 1% weekly loss as we approach the seasonal summer doldrums.
NFP Miss Sees Little Market Reaction
Nonfarm payrolls fell short of expectations, with 164,000 jobs added in the U.S. during April.
This was well below expectations for the second consecutive month.
The same report from the Department of Labor showed that the national unemployment rate fell to 3.9%, the lowest in almost two decades.
Nonetheless, wage growth was still almost nonexistent.
Wall St opened marginally higher on Friday. Both the Dow Jones and S&P 500 are currently below their 200-day moving averages.
The 10-year Treasury yield slid to a two-week low around 2.93%.
The U.S. yield curve continues to flatten—in other words, the spread between short-term bond yields and longer-dated bonds is narrowing.
Germany’s 10-year Bund saw fresh demand as yields fell five basis points to just 0.53%.
Commodity prices were generally unchanged this morning despite a firmer dollar.
Crude oil prices opened flat: the July Brent contract traded around $73.60/bbl while WTI crude for June delivery held just shy of $68.50/bbl.
U.S.-China Trade Talks Begin, Stocks Wobble
After weeks of threats back and forth, representatives from the world’s two largest economies are ready to discuss trade.
Trade talks are beginning between members of President Trump’s cabinet and a Chinese delegation in Beijing.
Treasury Secretary Steven Mnuchin offered an optimistic assessment of how the negotiations are progressing.
However, the biggest points of disagreement between the two countries remain unresolved.
Yet it’s also likely that stock markets are overreacting to these trade war concerns.
Such disputes over trade policy are more likely to impact global currencies, according to analysts at Oxford Economics.
The U.S. dollar index jumped 0.5% to about 92.9 on Friday, its highest since late December.
Accordingly, the euro and pound sterling each fell by the same margin, trading at $1.19 and $1.35, respectively.
Japan’s yen actually rose slightly to ¥109 against the USD.
Markets in Tokyo were closed again for holiday. Equities lost ground on the Asian mainland overnight.
In Europe, stock indices were up 0.45% in London and gained 0.25% in Germany, but were down slightly in France.
Bank shares lagged the broader markets in the eurozone Friday as big financial firms such as HSBC, Société Générale, and BNP Paribas saw poor quarterly results.
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