There has been an extended rally in both US equities and gold pricing this week. Both asset classes have moved to higher ground. Gold and equities running in tandem with price advances for a sustained time period is a rare occurrence. Typically, these asset classes have an inverse correlation. Liquidity will usually move from equities to gold on signs of weakness in the risk-on asset class, and move from gold to equities when investors favor stocks over safe-haven investments.
Beginning on Thursday of last week (May 30th), traders have moved gold prices higher each consecutive day... Read more
Unquestionably one of the most important economic reports each month is the U.S. Labor Department’s jobs report (non-farm payroll). Set to be released tomorrow, traders and market participants are awaiting the numbers following a dismal ADP private sector jobs report that was released yesterday. Although economists had forecasted 175,000 private sector jobs created last month, the actual number was only a fraction of the forecast.
It was revealed that only a mere 27,000 new private sector jobs were added in May. The number released from ADP yesterday were the lowest numbers to in nine years.... Read more
On an extremely volatile day gold has traded within one dollar of its highest price year to date for 2019. On a closing basis, gold hit an apex or the highest closing price on February 20. Although it traded to a high that day of approximately $1350, gold closed at $1347. That closing price is below the ceiling achieved over the prior two years which was approximately $1370.
Even though gold futures had an intraday high of $1340.90, current pricing is well below that with the August 2019 futures contract currently fixed at $1335.60. The intraday high occurred in overseas trading last night... Read more
As of 4:00 PM EDT U.S. equities surged today with the Dow Jones industrial average up over 500 points, a 2.06% gain. The NASDAQ composite had a stellar performance today up 2.38%, which was the largest percentage gain when compared to the S&P 500 and the Dow. Gold also closed up slightly on the day gaining approximately three dollars, with August futures currently fixed at $1330.80.
U.S. equities as well as gold moved in tandem to the upside based largely upon comments made by Fed Chairman Jerome Powell.
According to Reuters “The Federal Reserve will respond “as appropriate” to the... Read more