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Gold Loses Paris Safe Haven Bounce

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Gold Loses Paris Safe Haven Bounce
gold-rally

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

global-markets-down

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.

Other Commodities

terrorist

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.

 

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.

About the Author

Everett Millman

Steven Cochran

Precious Metals Market Analyst
BS University of South Florida (2002)

A published writer, Steven's coverage of precious metals goes beyond the daily news to explain how ancillary factors affect the market.

Steven specializes in market analysis with an emphasis on stocks, corporate bonds, and government debt. He writes a monthly review of the precious metals markets for SurvivalBlog.com.

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