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Gold

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.

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.

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.

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.

Gold prices have skyrocketed to the second highest level this year. As of 4 PM EDT gold futures basis the most active August contract is currently fixed at $1332.30, after factoring in today’s gains of $21.20. Gold is now within striking distance of surpassing the current high of 2019 at approximately $1350 per ounce.