Gold Hammered By Risk On Party In Equities Across The Globe

Asia opened the celebrations with the Nikkei jumping 2.45%, Shanghai up 1.80% and Hong Kong rising 1.60%. Good way to start the proceedings for equities bulls.

The French CAC rose 1.60% and the DAX was higher by 1.30%. The FTSE was marginally off, but, given great Britain’s precarious economic perch, it was really a win.

Although percentage gains in the U.S. stocks are less than those overseas, still, the gains are pushing indexes into new territories and achievements.

The Dow hit an all-time high on the day. The S&P 500 moved deeper into record-high territory today as fears continue to dissipate over Brexit and as Japan signaled it would expand and enhance currently ineffective economic stimulus moves. (To the tune of another $100 billion.)

Post Brexit, the S&P 500 is up 8.00%, which would be very good for a whole year’s gains.

Needless to say, gold prices shrank and silver finally followed big sister’s lead. Gold was down 1.60% and silver about 0.70%. This may be a good thing for gold bulls in the long run as it will provide a more comfortable spot to step on board the train back upward.

Aside from the Japanese commitment to further stim moves, in the U.S. inventories last month barely rose and the job openings/ labor turnover summary fell to a still-very-robust 5.5 million jobs. Need a job? Go get it.

West Texas Intermediate is up well over 4.00%, having settled at the close of the regular session at +4.56%. That certainly helped the Dow and S&P rises.

Also weighing on precious metals prices were a strong uptick in U.S. treasuries yields. The 10-year bond yield rose 0.078, holding over 1.50% in midafternoon.

If we look forward to tomorrow, we see that the futures boards for all U.S. stock indexes are pointing up quite vigorously. The S&P mini looks strongest right now.

While we are discussing “tomorrow,” it’s a good time to remember to keep a very sharp eye peeled for movements in gasoline commodities market prices. We like the weaker U.S. dollar more than ever because, as the U.S. and Canada produce more of their own oil, there is more insulation from price shock from overseas. And, more North American oil means more pressure on OPEC producers.

Without getting into the issues surrounding pollution and renewables, oil may be entering a golden age of cheapness for North Americans.

Wishing you as always, good trading,