Overall response in the markets to the horrible attacks Friday night in Paris has been muted, except for tourism and travel stocks. Gold saw moderate safe haven demand at the start of trading this week, reaching $1,098 an ounce. This is a ten-day high. Spot gold saw some delayed profit taking in early New York trading afterwards, bringing the price down to just above unchanged. On the physical gold front, the US Mint announced that it has sold out of 2015 1/4 oz American Gold Eagles.
Silver saw some safe haven support of its own, peaking above $14.50 before easing back to near unchanged. The biggest mover for both precious metals remains the US dollar.
Wall St. Spanked Last Week
Wall St. is volatile this morning, bouncing off the opening, then fading back to unchanged. All three major indices fell over 1% on Friday, extending their losing streak to three days. They all closed the week under their 200 DMA. The Dow was down 3.7% for the week, the S&P 500 down 3.6%, and the Nasdaq down 4.3%. This was the biggest weekly loss for Wall St. in 12 weeks.
Oil prices saw early gains on news that French warplanes hit the "capital" of the self-proclaimed Islamic State in Syria. Reports that US airstrikes were finally hitting the oil infrastructure controlled by the terrorists also helped crude markets. ISIS, also known by their Islamic name Daesh, gain billions of dollars a month from oil sales to third parties, who then smuggle it into neighboring countries. The money funds recruitment efforts as well as financing terror attacks abroad.
Copper remains near six-month lows, on disappointing economic news from Asia. Not only does the Chinese economy look to keep scaling back, but Japan just entered its fifth recession in a row. People are calling the prime minister's policy of massive quantitative easing into question.
Safe Haven Demand for USD, Too
The euro dropped to a five-month low overnight. This, combined with some safe haven demand, find the US dollar up moderately. The greenback is back above the 99 mark against the DXY basket of currencies.
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