Thursday, May 22, 2014
Yesterday’s FOMC minutes revealed that policymakers will continue to provide assistance to the economy and keep interest rates low. Two central bankers are set to leave the Fed this month while three are poised to join before the next policy meeting. With this change, there could be expectations of uncertainty in the market in respect to the Fed’s future actions. Before the Fed decides to raise rates, they will scrutinize the unemployment rate until the desirable figure is achieved. Raising rates will be dependent upon improving economic data as the prevailing view is that inflation will achieve the 2% objective over the next few years. Initial Jobless Claims for the week ending 5/17 are up 28,000 pulling gold prices higher this morning. Gold is underpinning Platinum prices which jumped to a high of 1497.80 this morning for July delivery. Have a wonderful day.
Monday, May 19, 2014
What a way to start Monday morning with the precious metal market trading on the upside this morning.
What a way to start Monday morning with the precious metal market trading on the upside this morning. Gold, Silver, Platinum, and Palladium are trading in the positive territory up .58%, 1.18%, .96%, .70% respectively. Platinum and Palladium are extending their gains this morning amid supply concerns due to the strike in South Africa. The strike continues in its 16th week and still no resolution in sight. The safe-haven metal is up 7.5% for the year. Have a wonderful day!
Thursday, May 15, 2014
Platinum and Palladium prices have eased this morning as investors sold into the highs to reap profits.
Platinum and Palladium prices have eased this morning as investors sold into the highs to reap profits. Platinum closed $29.70 higher yesterday at $1485.70 for July delivery pulling Gold prices higher which closed at 1305.90 for June delivery. The violence in South Africa has intensified with 4 platinum miners killed as they tried to return to work. The AMCU is trying to inhibit other strikers from returning to work via intimidation. More violence means it will take longer for the producers and the AMCU to come to a settlement along with less employees returning to work. April CPI met expectations with a reading of .3%. Initial Jobless Claims for the week ending 5/9 are down 24,000 with a figure of 297,000. CPI (YoY) is in line with forecasts of 2%. Have a great day!
Monday, May 12, 2014
What a nice way to start this beautiful morning with AU, AG, PT, and PD up 1.05%, 2.39%, .86%, and 1.03%.
What a nice way to start this beautiful morning with AU, AG, PT, and PD up 1.05%, 2.39%, .86%, and 1.03%. The instability in Ukraine along with a softer U.S. dollar reversed the selling pressure on gold seen this morning in the Asian markets. Geopolitical tensions have been unable to extend gold’s gains above the $1300 level. The strike continues and at this point job cuts and restructuring at Lonmin are bound to happen as earnings decline. Quiet day this morning with limited news and data. Have a great Monday!!
Friday, May 9, 2014
Yesterday Janet Yellen spoke once again at Capitol Hill to reiterate what she said on Wednesday. The markets didn’t move much since Yellen was repeating what everyone already knew. Putin made an announcement to postpone the referendum, however Pro-Moscow separatists ignored the call and declared that they will proceed with a vote on Sunday that could result in chaos! According to ECB President Mario Draghi, the bank will take any action necessary in June to strengthen the economy if inflation objectives are not met. PGM prices continue to be underpinned by the ongoing strike in South Africa. Have a wonderful weekend!
Thursday, May 8, 2014
Yesterday, the Fed Chair testified and discussed that there is still a considerable amount of slack...
Yesterday, the Fed Chair testified and discussed that there is still a considerable amount of slack in the labor market, particularly in the housing sector. Yellen believes economic activity will expand, unemployment will decline gradually, and inflation will reach the 2% objective. The rate of long term unemployment has plenty of room for improvement and thus monetary accommodation is still necessary. Once again, Yellen mentioned that rates would have to stay low for a “considerable” time period even when quantitative easing is over. As per Yellen, geopolitics is a prominent economic risk as tensions in Ukraine continue to intensify. We saw a selloff yesterday in the markets when Putin announced he would pull his troops away from the Ukrainian border and delay the referendum. Gold and Silver declined closing on the downside $19.70 at 1288.90 for June delivery and closing .303 cents lower at 19.342 for July delivery. The BOE and ECB have both decided to leave rates unchanged at .50% and .25% respectively. Initial Jobless Claims for the week ending 5/3 dropped 26,000 with a reading of 319,000. This drop was expected with people away for the Easter holiday. Have a great day!
Wednesday, May 7, 2014
Precious metals market is down this morning with AU, AG, PT, and PD trading .32%, .54%, .98%, 1.12% on the downside this morning.
Precious metals market is down this morning with AU, AG, PT, and PD trading .32%, .54%, .98%, 1.12% on the downside this morning. We have seen gold trading sideways amid the political turmoil in Ukraine and the Fed’s decision to taper by another $10B/month. Investors are waiting for Yellen’s comments later this morning at 10:00 a.m. Markets will have their ears open for any indications about when investors should expect to see a raise in rates. Still no resolution between the Platinum producers and the AMCU as the strike continues for the fifteenth week. Have a great day!!
Monday, May 5, 2014
What a great way to start the morning with the precious metals complex trading on the upside. Gold, Silver, Platinum, Palladium are all up .87%, .73%, .91%, and .46% respectively. Gold’s losses were limited on Friday despite a stronger than forecasted jobs report due to an increased number of workers dropping out of the labor force. The economic data was favorable for the gold bulls with the metal closing $19.50 higher on Friday at 1302.90 for June delivery. It’s expected to be a quiet day today since London is closed for May Day holiday. The latest update on the strike is that the union didn’t accept the platinum producers’ revised offer. ISM Non-Manufacturing PMI figures will be released today at 10:00 a.m. Have a fabulous day.
Thursday, May 1, 2014
We saw more action yesterday morning in the precious metals market with first quarter’s weak GDP number than we did when the FOMC minutes were released yesterday afternoon.
We saw more action yesterday morning in the precious metals market with first quarter’s weak GDP number than we did when the FOMC minutes were released yesterday afternoon. The Fed is trimming its bond purchases by another $10 billion from $55 billion/month to $45 billion/month. According to the Fed, a weak first quarter GDP was expected due to adverse weather conditions. Quantitative easing is expected to be completed by October while rates are expected to rise by mid-2015. “The Committee expects that, with appropriate policy accommodation, economic activity will expand at a moderate pace and labor market conditions will continue to improve gradually.” Now that the Fed has continued its pull back program by another $10B as expected, investors are anxiously waiting for tomorrow’s Nonfarm Payroll figures. Initial Jobless Claims for the week ending 4/26 are up 14,000 with a reading of 344,000. Personal spending for March is up .9% vs. expectations of.6%. Have a wonderful day!