After trading as high as $1,296/oz (a two-week high) on Thursday morning, gold prices were just above unchanged at $1,292/oz. Spot silver similarly was a tick above unchanged. Interestingly, during yesterday's trading session, both gold and silver rose by the exact same proportion (0.29%) that the U.S. dollar fell.
Platinum gained 0.5% early this morning while palladium jumped another 1.8%, surging $40 per ounce in only the last two trading days.
Wednesday's closing numbers are as follows:
Gold: $1,291.20/oz (+$3.70, +0.29%) Silver: $17.15/oz (+5¢, +0.29%) Platinum: $931/oz (unchanged) Palladium: $952/oz (+$25, +2.70%)
Dow Jones: 22,872.89 (+42.21, +0.18%) S&P 500: 2,555.24 (+4.60, +0.18%) Nasdaq: 6,603.55 (+16.30, +0.25%) DXY: 92.96 (-0.27, -0.29%) WTI crude: $51.03/bbl (+11¢, +0.22%)
A pair of data points for the U.S. economy offered encouragement to Wall St on Thursday. Both came from the Department of Labor.
First, producer prices showed a 0.4% gain during September, which was twice as fast as August. Most analysts attributed the rise to higher gasoline prices in the wake of the major hurricanes during the month. The wholesale rate for gas jumped nearly 11% in September. Year-on-year, the producer price index (PPI) is up 2.6%—the sharpest rise in PPI since February 2012.
The Labor Department also reported that weekly jobless claims dropped for the second straight week. Initial filings for unemployment benefits fell by 15,000 to a total of 243,000 new claims during the first week of October. The data was seasonally adjusted. This beat most expectations and was a marked improvement from the week previous, which was likewise weighed on by the impact of the Atlantic hurricanes.
In the forex market, the pound sterling fell 0.7% on Thursday morning as the Brexit talks between the U.K. and EU hit a wall. The trajectory of these negotiations will continue to influence how European markets perform. If there's one (and only one) certainty about market dynamics and investor behavior, it's that neither responds well to uncertainty. Meanwhile, the dollar was up slightly on the DXY index to 93.1.
Crude oil's rally this week has lost some steam, as WTI crude fell 1.95% in early trading. Brent crude was also down 1.55%, trading at roughly $56 per barrel. Not surprisingly, this helped natural gas prices jump 1.9%.
Besides commodities, the major movement today could be in the stock market as the first earnings reports for the third quarter begin to come out. Financials will be some of the first to publicize their quarterly earnings today. Wall St opened about 0.2% lower, coming off of yesterday's record highs.
In other news, Bitcoin prices hit an all-time high, breaching $5,200 amid a flurry of speculative interest in the cryptocurrency. It's worth noting that the last time Bitcoin was near $5,000 a few weeks ago, it subsequently lost almost 40% of its value.
The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product.