"Risk on" Atmosphere Pressures Gold: Morning Market Update - Gainesville Coins News
No Minimum order! We accept Pay with Credit Card
Call Us: (813) 482-9300 Mon-Fri 9:00AM-6:00PM EST
Login or Register
Log into your account
About Gainesville Coins ®
Billions Of Dollars Bought And Sold A+ BBB Rating 10+ Years No Hidden Fees Or Commissions All Inventory Ships Directly From Our Vault

"Risk on" Atmosphere Pressures Gold: Morning Market Update

blog | Published On 5/27/2014 10:46:02 AM by Gainesville Coins

Update: Gold breaks lower, tests $1,265 level as S&P 500 hits new high.

Better than expected outcomes in elections in the European Union and Ukraine over the weekend have combined with upbeat economic reports in the U.S. to promote a risk-on day in the markets.

Precious metals except palladium sold off as the U.S. markets returned from the Memorial Day holiday to a Europe that hadn't dissolved into chaos after all, and everyone jumped into stocks. Gold touched a three-week low

The "Chocolate Billionaire," candy magnate Petro Poroshenko, handily won Sunday's Presidential elections in Ukraine, in a contest where the two neo-nazi candidates together received less than 2% of the vote. A major concern in eastern Ukraine was the fear that neo-nazis were running the new government in Kiev, and were determined to purge ethnic Russians. These fears have now apparently been proven groundless. The pro-Russian separatists received another blow when Ukrainian Army forces retook the Donetsk airport, killing 50 rebels.

Elections in the EU came out better than expected for the establishment, with the present ruling coalitions in Italy and Germany winning handily. While Euroskeptics made gains, especially in France and the U.K., it was apparently not as much as had been feared. More good news for European markets came from ECB president Mario Draghi, when he said yesterday that "more pre-emptive action may be warranted" by the central bank.

In the U.S., durable goods orders were up 0.8% from last month's 3.8%, mainly on increased defense spending, and inventory stuffing. Inventory levels are now at all-time highs, as companies keep producing to make their reports look better. The service sector grew, with a flash services PMI of 58.4 compared to 55.0 in April, and consumer confidence rose to 83 from 81.7.

All is not sunshine and roses, however. Chinese fishing vessels, rumored to have numbered more then 40 boats, surrounded, rammed and sank a Vietnamese fishing boat in a disputed area of the South China Sea. Rhetoric from Beijing is becoming increasingly hostile towards Vietnam, calling their protestations "ridiculous." Back in Ukraine, border guards were engaged in a firefight with armed men trying to cross the border from Russia.

by Steven Cochran

Gainesville Coins Portfolio Tracker and Financial News

This site uses cookies for analytics and to deliver personalized content. By continuing to browse our site, you agree that you have read and understand our Privacy Policy.