Walter Pehowich is off today
After Frantic Friday, gold’s changes have settled down to a slightly positive mode.
The yellow metal fell from a one-month high on Friday in reaction to the Dollar’s climb when with the U.S. dollar index hit an 11-month high – continuing its role as recent drag on precious metals.
The announcement of the U.S. trade tariffs on $50 billion in Chinese goods on Friday was followed shortly by Beijing unveiling 25 percent tariffs on a wide range of 659 U.S. products, from soybeans and vehicles. Investors fear this will eventually hurt global growth.
Unfortunately for gold, it seemed to react more like a raw commodity to this news on Friday, than the safe haven it normally is during times of economic turmoil as it fell to a six-month low.
This morning finds the Dow down over 200 while gold has eased itself into a higher position in early trading, reclaiming some of it’s turf with a short-covering bounce from Friday’s six-month low as gold finds it’s way back to safe haven territory due to growing risk in the marketplace. At the time of this report,August Comex gold futures were up $4.10 an ounce at $1,282.60 and the August Comex silver was up $0.06 at $16.58 an ounce.
Economic headlines to watch for this week
- The Brexit withdrawal bill will be taken up by the U.K. House of Lords today. This bill sparked dramatic votes in the Commons. Details are likely to emerge on the amendment that quelled a revolt by pro-EU Conservatives.
- European Central Bank President Mario Draghi to speaks at the ECB’s Forum on Tuesday.
- In the U.S., the only items slated is housing starts report on Tuesday. It is expected to show a rise in May.
Have a wonderful Monday
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