The downtrend for the precious metals continued into Wednesday's trading session. The gold price was essentially flat at the opening bell at $1,243/oz after losing some ground overnight. The yellow metal looks to avoid its sixth straight trading day of losses. Silver prices were down 0.5%, or 7¢ lower, to trade below $16.40/oz. Platinum was slightly lower while palladium went the other direction, moving modestly higher.
If nothing else, the slip in gold prices offers a good buying opportunity for value investors who are looking to take advantage of the occasional price dips. This is the first time that spot gold has traded below $1,250 an ounce in roughly a month.
Interestingly, stocks were also lower on Wednesday morning, particularly in Europe. The tech sector has been lagging of late after a fantastic start to the year. It doesn't help that some of the biggest firms in the industry continue to generate negative publicity. Uber, the ride-sharing company that prides itself on disrupting the way the taxi business works, is shaking up its C-suite after investors called for CEO Travis Kalanick to resign. In addition to reports of a culture of gender discrimination at the company, Kalanick was captured on camera berating an Uber driver recently.
Those traders who are watching the crude oil market closely will note that the commodity has officially entered a bear market, as West Texas Intermediate (WTI) is now 20% off of its high over the last 52 weeks. However, anyone who needed such a statistical marker to realize that oil was in a bear market is simply not paying attention. Crude prices were steadying on Wednesday after the sharp drop earlier in the week, with WTI trading above $43.50/bbl. Saudi Arabia, one of the world's oil powerhouses, has created some buzz about palace intrigue surrounding the Saudi royal family. Rumors of changes to the royal hierarchy could bring about a distinct shift in power among the Saudi prices going forward.
In other news, the markets are still digesting the addition of hundreds of Chinese stocks to the MSCI emerging markets index, giving companies listed on exchanges in the People's Republic a greater weighting on the index. This is seen not only as a move that adds legitimacy to the incipient mainland Chinese stock market, but also signals that Chinese securities will trade more widely around the world, albeit indirectly through an index.
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.