For the second straight morning, the gold market withstood a bout of profit-taking that sent prices sharply lower as trading opened in New York. On both occasions, the precious metals managed to claw back their losses. Spot gold fell as low as $1,260/oz overnight before recovering to about unchanged at $1,266/oz.
Silver prices were about 5¢ higher to $16.61/oz. Palladium slipped $4 per ounce to settle at $880/oz while platinum surged $11 higher to about $956/oz.
Here are Wednesday's closing numbers for the precious metals:
Gold: $1,266.20/oz (-$2, -0.16%) Silver: $16.56/oz (-13¢, -0.78%) Platinum: $945/oz (+$2, +0.21%) Palladium: $884/oz (unchanged)
Economic Data Keeps Rolling In
The huge dump of economic data this week continues as the latest jobless numbers were released this morning. The Labor Department reported that that first-time jobless claims fell during the last week of July. The number of Americans filing for unemployment benefits dropped by 5,000 to a total of 240,000 during the week. As it stands, some 1.97 million people are currently receiving assistance beyond a one-week time frame (known as "continuing claims").
Stocks showed little reaction to the jobless data, as indices in the U.S. opened mixed. Of far greater interest is tomorow's nonfarm payrolls, a more comprehensive (though less up-to-date) snapshot of the U.S. labor market. The dollar remained just below 93.0 on the DXY index as the euro continues to dominate the forex market. Interestingly enough, the 10-year Treasury yield has fallen to 2.25%.
In news related to major central banks, the Bank of England decided to keep interest rates steady this morning, as many had expected. The bank also lowered its growth forecasts for wages and GDP. BOE Governor Mark Carney suggested that Brexit will continue to weigh on investment and economic activity in the U.K. until the divorce is finalized. This uncertainty would be a fair reason for cutting its forecasts, but the BOE admits that its projections still assume an orderly Brexit process with little further disruption.
It's hard to believe that we are more than one year removed from the actual referendum that set in motion the Brexit negotiations. Despite some political showmanship by leaders on the continent about how Britain could still reverse its decision to leave the EU, it's unlikely that Europe will backtrack on the break-up now that its economy appears to be gaining momentum. Throughout the decades-long project of "European integration," the U.K. is notoriously at odds politically with the major European powers. No other member nation has voted against decisions made by the EU Council more than Great Britain.
While the outlook for the precious metals remains a bit of a mixed bag, it's a strong sign that gold has bounced back so quickly after traders and investors took profits on the yellow metal's recent steady rise back near $1,270/oz, just $5 per ounce shy of where it was on Election Day (November 8th of last year).
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.