Gold Taps The Brakes As Wall Street Breathes Easier

The Market Gage - Dillon Gage's Precious Metals Newsletter

Walter Pehowich is off today. A senior DG Staffer provided today’s commentary.

Wall Street is breathing just a tad easier with the market jumping 151 points on Tuesday, ending nine consecutive days of losses, the worst streak since 2011. It appears investors may have been spooked by the stunning rejection of health care reform last week, with thoughts now turning to President Trump’s tax reform plans. Will this initiative meet the same fate? Only time will tell.

With the stock market bump, gold predictably closed a little lower on the day. Spot gold fell 0.2 percent to $1,251.38 an ounce. U.S. gold futures fell 0.4 percent to $1,251.20 an ounce. Currently, the yellow metal has clawed its way back up to $1,253. So far this week, the news has been good, with gold at a four-week high as Monday began. Silver continues to shine, closing yesterday at a four-week high as well, now trading ever so slightly lower a $18.19.

Global markets seem to be taking a cue from yesterday’s Wall Street success, which was no doubt boosted by the release of U.S. consumer confidence data showing a 16-year high. Optimism seems to have a contagious effect with Asian markets opening higher.

Have a wonderful Wednesday and stay tuned…

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