Gold rebounded from its lowest level of 2018 this morning, weighed down by a continuing rally for the dollar.
Palladium rose $9 (+0.9%) to $970/oz. However, platinum dipped about 0.35% (-$3) to trade near $880/oz.
Trade War With China Pauses, Dollar Still Hot
Markets reacted positively to news that trade tensions between China and the U.S. appear to be cooling.
Washington has been sending conflicting messages about the situation, resorting to a kind of "good cop, bad cop" dynamic.
Nonetheless, it appears that both sides are content to put any tariffs "on hold" while negotiations move forward.
U.S. stocks moved sharply higher Monday after the Dow Jones ended completely flat on Friday. All three indices gained about 1% in the first hour of trading.
The Nikkei 225 closed 0.3% higher last night, although Tokyo's other main index fell slightly. Shares rose 0.6% in Hong Kong and 0.5% in Shanghai.
The dollar was up again as the DXY index added 0.1% to 93.7.
Since the beginning of last month, the dollar has gained 4% against its major peers. Yet the stronger currency could place a drag on equities.
Currencies Lose Ground, Election in Venezuela Criticized
Most foreign currencies took a hit due to the dollar's strength.
The euro was roughly unchanged, holding just above $1.175. The Japanese yen was off 0.4% to ¥111.25 per dollar, and the British pound was also lower, trading just above $1.34.
There are reports that the U.K.'s Conservative party may hold new parliamentary elections later this year. Disagreement over how to handle Brexit continues to plague the current government.
Officials from across the Americas as well as Europe condemned the vote as a farce, citing numerous questionable tactics used by pro-Maduro groups. Less than half of eligible voters turned out for the election.
Several countries indicated they would downgrade diplomatic relations with Venezuela. The U.S. threatened sanctions on the country's oil industry.
The crude oil benchmarks were both up on Monday. WTI rose 0.5% to about $71.65/bbl and Brent crude reversed losses to return to $78.55/bbl.
Bonds fell modestly as the 10-year Treasury yield moved one basis point higher to 3.07%.
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