Quiet and subdued action is the underlining characteristic of the day, as market participants await the conclusion of this month’s Federal Open Market Committee (FOMC) meeting. Most analysts believe that the result will be interest rates that remain steady and fixed at their current rate.
Under intense selling pressure, the precious metals complex traded dramatically lower on the day. As of 4 o’clock Eastern standard time, gold (spot price) is currently trading at 1257 (-.0.88%), putting it down almost $11 on the day. The most active futures contract (June 2017) is trading at 1258, down just over $10 (-0.82%) on the day.
While closing lower on the week and higher on the day, one only needs to stand back to see the respectable performance in gold prices this year. Gold closed out the month of April with a moderate gain of 1%. This came following a dismal performance in March, in which gold prices closed relatively unchanged, gaining roughly 1 dollar during the month.
Unless the House and Senate Appropriations Committee pass a short-term spending bill to keep the doors of the government open, the U.S. government will run out of money at exactly midnight on Friday April 28th.
Is President Trump living in a “Field of Dreams” or will his proposed “massive” tax cut grow the economy enough to make up for the trillions of dollars of lost revenue? That is the question on the minds of economists and individual taxpayers, as well as, and most importantly, the politicians who will vote on this proposal.
U.S. equities continue their historic climb, an event which began last year and accelerated exponentially following the presidential election in November. The Dow Jones Industrial Average gained 1.12% on the day, rising 232.23 points and closing at 20996.12. The S&P 500 rose 0.66% today, a gain of over 15 points to close at 2389.68.
The euphoria surrounding the outcome of France’s election sent shockwaves throughout the global financial markets, as concerns as to whether France would leave the European Union diminished.
For market participants who invest or trade gold, it has been an interesting week. Although gold prices traded to a higher high and a lower low than the previous week, the net change overall was a fractional loss of approximately one dollar.
Gold prices are holding steady considering the dynamic upside swing witnessed today in U.S. equities. The Dow Jones Industrial Average is trading a full percentage point higher on the day. As of 2:55 Eastern Standard Time it is trading at 20,611, up 207 points on the day.
Gold is trading under pressure for the first time since April 10th, when prices moved above long-standing resistance at 1262. The rally that followed the price breakout only served to drive prices even higher. This resulted in prices moving within three dollars of $1300 per ounce on April 17th, when gold prices traded to 1297.30 on an intraday basis.
