Gold continues to get crushed despite the best efforts of Fed members to quell concerns

Gold continues to get crushed despite the best efforts of Fed members to quell concerns that the QE gravy trains will reach its final destination some time before the end of the year, as indicted by the conductor, Ben Bernanke, last week. The yellow metal ventured into territory not seen in quite some time, sub-$1200, hitting a low of $1179.4 in overnight hours. Gold has managed to regain some of that ground but still sits more than 1.5% off of yesterdays close of $1211.60. Silver is relatively unchanged from the end of yesterday’s session. Platinum is off nearly .5% to start the day but was much worse off in the overnight hours as the white metal breached the $1300 threshold, hitting $1295.4 before bouncing back to its current $1318 level. Palladium is off $5 from yesterdays close, now trading $644.60. Trading is expected to be choppy as we are at month, quarter and half-year end and producers and investors alike look to square the books. Chicago PMI and Michigan Consumer Confidence data is on tap for today, as well as some more Fed speak from Jeffery Lacker and John Williams. Have a great day and an even better weekend!

It would help if the Fed could get its story straight but I guess that’s beside the point.

Good Morning,

 

It would help if the Fed could get its story straight but I guess that’s beside the point. The latest rhetoric form Fed members in the know, specifically New York Fed Chairman Mr. Dudley, is that there really is no timeline to the end of QE as suggested by Chairman Bernanke in his address last week, rather it will be economic indicators that dictate the future of domestic monetary stimulus measures…I thought we already covered that? Anyway, the most recent economic data released this morning seem to lend support for the  “towards the end of the year”  argument. Unemployment claims fell by 9,000 and the previous weeks numbers were only revised up by 1,000. Personal Income and Spending data are up and pending home sales reach levels not seen since 2007. However, it will be the labor market that is the pivotal piece to the puzzle and we won’t know where that stands until next week. Meanwhile, we’re heading into the end of the second quarter so trading is expected to be choppy. Gold is trading slightly lower than yesterdays close of $1229.80. Platinum and palladium are the big gainers so far as recent price drops seem to have provided some bargain hunting opportunities for the industrial complex. Platinum is up nearly 1.5% while palladium us up 1.77% on the day. Have a great day!

Comments from the PBOC and a trifecta of positive U.S. economic data have gold and silver trading ..

Good Morning,

 

Comments from the PBOC and a trifecta of positive U.S. economic data have gold and silver trading relatively flat to yesterday’s close while platinum and palladium are both up more than 1.5% on the day. Fears of a credit crunch in the worlds #2 economy triggered a flight to cash but the Chinese central bank stepped in to lend some support by saying they would keep rates at reasonable levels. As fears subsided gold made a push towards $1290 but has given back those gains as a number of positive domestic economic reports bring back those unwanted thoughts of QE tapering. New Home sales gained for the third consecutive month, rising 2.1% to levels not seen since mid-2008. Consumer confidence is on the rise as well according to The Conference Board’s index that read 81.4  for the month of June, up from 74.3 in the previous month. U.S. durable goods orders were up  3.6% in the month of May. Have a great day!

 

The recent price movements in the precious complex, particularly palladium, remind me of a life

Good Morning,

 

The recent price movements in the precious complex, particularly palladium, remind me of a life lesson my father once told me. He said to me, “Sometimes you eat the bear and sometimes the bear eats you”. Unfortunately, it appears the bear is still pretty hungry. Gold continues to grind lower ahead of the FOMC meeting that will take place over the next day and a half. Worries that the Fed will begin to taper stimulus measures seem to be subsiding for the moment causing market participants to favor the equities arena as they try to squeeze every last drop before the well eventually runs dry and the Fed pulls the plug on the printing presses. The yellow metal closed the previous session at $1382 and now sits .75% lower at $1372.Platinum and palladium continue to test lows as worries of an AMCU strike at Lonmin are abating, for now. Platinum is down nearly another .5% from yesterday’s close and currently trades $1427. Palladium is nearing another 2% move lower and currently trades $706 after closing Monday’s session at $717. Also not helping the cause for the industrials are reports that European car sales hit their lowest level in two decades. On the domestic front, U.S. housing starts were up 6.8% in May and Consumer prices rose just .1%. The 12-month inflation measure is still below where the Fed-Heads would like it to be which should factor into their discussions today and tomorrow. Adding to the drama of the FOMC talks are indications that Ben Bernanke may be singing his Swan Song in the coming months…stay tuned. Have a great day!

The precious complex continues to feel the pressure as we head into Fed Meeting Week

Good Morning,

 

The precious complex continues to feel the pressure as we head into Fed Meeting Week. Chairman Bernanke and his cohorts will meet Tuesday/Wednesday and investors will eagerly await a statement from the Fed Chairman that should shed more light on the future of domestic monetary policy. Recent economic data has left much to be desired as far as substantial evidence that would support the tapering of the central banks $85 billion-a-month spending spree. Until the mid-week rhetoric, we could see some choppy trading as longs look to get less long and bargain hunters search for deals. Gold is trading a smidge lower to start the day but could test lower as U.S. equity markets are gearing up to follow the global trend upward as many key Asian and European markets gained more than 1% today. Palladium is the biggest loser thus far, down nearly 1.5% in early trading. Silver is down more than .5% after closing Fridays session at $21.954. Platinum is modestly softer from Fridays close, down just .17% as worries of tensions in South Africa ease…for the moment. Have a great day!

After closing yesterday’s session at $1392, on the back of continued weakness in the U.S. dollar

After closing yesterday’s session at $1392, on the back of continued weakness in the U.S. dollar, gold finds itself roughly 1% lower to start the day as U.S. weekly jobs data, lends some positive support to investor sentiment. First time unemployment claims fell last week by 12,000, beating expectations of a decline of just 1,000. However, despite the positive news, the equities arena could still be in for a rough ride as European and Asian trading sessions give little reason to expect anything different. The Nikkei took another step back to the tune of 6.4%. The rest of the metals are in negative territory as well as platinum trades 1.5% lower from yesterdays close of $1482.30 and palladium trades nearly 2% lower at its current level of $742.10. The PGMS are lower despite the talks between Lonmin and the AMCU having ended and no deal having  been reached. The AMCU had threatened to strike but a strike notice has not yet been delivered to the worlds #3 platinum producer. Business Inventories from the U.S. Census Bureau will come at 10:00 AM EST. Other than that, market participants will be left to ponder the future of central bank monetary policies. Have a great day!

The precious complex found itself under pressure through much of Tuesdays session

Good Morning,

 

The precious complex found itself under pressure through much of Tuesdays session following news that the Bank of Japan had decided, much to the chagrin of many market participants, not to adjust current monetary policy. This has only added fuel to the fire of QE speculation here in the States. Gold managed to claw back some of those early losses as equities retreated and closed the session at $1377. A clearer picture of investor sentiment surrounding the Federal Reserve’s stimulus stance will come this afternoon when $21 billion of 10-year bonds are sold at 1 PM EST. As for the rest of the complex, platinum and palladium closed Tuesdays session lower as there was relative quiet on the South Africa front amid thin trading conditions overall. However, that could all change as Lonmin/AMCU talks are at a make or break point. The AMCU intends to serve the world’s #3 platinum producer with a strike notice if their demands, regarding organizational privileges, aren’t met today. Platinum is trading flat to yesterdays close of $1480 at the moment but could find the $1500 rather easily should Lonmin’s decision not be to the unions liking. Palladium is up slightly to $755 after closing the previous session at $752.50. Have a great day!

 

A bearish sentiment looks to be permeating the precious complex this morning

Good Morning,


A bearish sentiment looks to be permeating the precious complex this morning as all the metals find themselves in negative territory to start the day. Gold did manage to close Monday’s session modestly higher as counter-intuitive U.S. dollar weakness lent support to the yellow metal, despite an improved outlook on long-term U.S. debt from S&P. Gold is now trading more than 1% lower. Silver and platinum are each down nearly 2% while palladium has given up nearly $20 from yesterday’s close at $769.40. The major news overnight was the Bank of Japan leaving their monetary policy unchanged instead of increasing stimulus as many market participants were hoping for. Worries that this could be a sign that central banks could be gearing up for a pullback on their respective monetary policies has sent global equities markets lower. Asian markets were down more than 1% and the DJIA is already down nearly 1% to start the day. There is nothing of great importance on tap as far as economic reports are concerned. Have a great day!

Market participants will have some additional time to digest Friday’s NFP numbers

Good Morning,

 

Market participants will have some additional time to digest Friday’s NFP numbers and what they think it means for the future of QE. Shanghai is on holiday until the 13^th of June and there is little in the way of economic reports to start the week.  Just in case you missed it, the Labor Department reported that 175,000 jobs were added to the economy last month which beat expectations and was higher than the downwardly revised 149,000 jobs added in April. The unemployment rate went the wrong direction, up to 7.6%, and to make things even more confusing, the Labor Force Participation Rate moved up to 63.4%. What does it all mean? Well, that’s for the individual to decide because cases can be made for either side of the QE debate. However Chairman Bernanke and his cohorts decide to define the word “sustainable” at the next FOMC meeting will give us a better picture. The precious complex is mixed this morning but relatively quiet following Friday’s festivities. Have a great day!

The precious complex remains a mixed bag this morning and relatively quiet despite

Good Morning,

The precious complex remains a mixed bag this morning and relatively quiet despite yesterday’s disappointing U.S. economic data (ADP and ISM) that had the DJIA closing below 15,000 for the first time in 6 weeks. US weekly jobless claims fell by 11,000 last week, which is all well and good – since that means less people are being let go – but if hiring doesn’t pick up it could be a moot point. We’ll know more tomorrow when the government releases its May jobs data. Until then, it should be a rather uneventful day. Overseas, Japanese stocks continue to take a beating as the Nikkei fell below 13,000 for the first time since early April, this time losing .9%. Across the pond, The Bank of England and the European Central Bank left rates unchanged and the euro has managed to gain .3% despite the ECB cutting 2013 growth forecasts. The ECB is estimating a .6% decline in the economy throughout the remainder of the year while predicting 1.1% growth for 2014. Gold is unchanged from yesterday’s close of $1398.40 with silver down modestly to $22.435. Platinum is the beneficiary of continued tensions in South Africa as the white metal closed yesterday’s session above the $1500 handle and now trades at $1514. Palladium remains buoyant as well, unchanged at the moment from yesterdays close of $754. Have a great day!