Gold Prices Down After Coup Fails - Gainesville Coins News
No Minimum order! We accept Pay with Credit Card
Call Us: (813) 482-9300 Mon-Fri 9:00AM-6:00PM EST
Login or Register
Log into your account
About Gainesville Coins ®
Billions Of Dollars Bought And Sold A+ BBB Rating 10+ Years No Hidden Fees Or Commissions All Inventory Ships Directly From Our Vault

Gold Prices Down After Coup Fails

blog | Published On by
Gold Prices Down After Coup Fails
turkey_map

Gold prices are softer this morning, as markets refocus on earnings reports in the US and an invocation of Article 50 by the UK is pushed back. Late Friday night some elements of the Turkish Army attempted a coup against the government of President Recep Erdogan, claiming he was pushing an Islamist agenda.

The situation was resolved in the early hours of Saturday morning, as the coup fell apart in the face of popular protest. The situation had been resolved for over a day before gold started trading in Asia late Sunday night US time, so received no safe haven bounce. On the contrary, the relief over the failure of the coup led to a risk-on environment, as corporate earnings continue to signal a healthy economy in the US.

As of 10am ET, spot gold is rising from session lows, trading at $1,333 an ounce, down $4.10. The silver spot price is trading at $19.94, also up from session lows, but still down 26 cents for the day.

gold-investigation

August gold futures fell $4.80 Friday to settle at $1327.40 an ounce. This was COMEX gold's first weekly loss in almost two months, down 2.3%. This snaps a six-week win streak that saw "paper gold" gain nearly 12%. September silver futures kept its winning streak alive for the seventh week. COMEX silver was up 0.3% for the week, even after losing 15.7 cents Friday to end at $20.165 an ounce. The white metal saw a volatile week, as its Wednesday close at a two-year high sparked massive profit taking on Thursday.

Spot gold closed Friday near the top of the day's trading range, losing $2.50 to close at $1337.10 Spot silver ended the week at $20.20, down only 7 cents.

Upbeat economic news out of China Friday and encouraging earnings reports in the US helped blunt some of the risk-off sentiment over the deadly attack in Nice, France, that left over 80 dead.  Wall St. recorded its third week of gains, though the S&P 500 and Nasdaq were both down slightly at Friday's close.

stock rally

The bull market in stocks that saw new records for the Dow and S&P 500 pushed Treasuries down for their worst week in a year. The yield on the 10-year Treasury note gained 23 basis points for the week, after hitting an all-time record low on July 6th.

These same factors gave crude oil futures a lift Friday, enabling August WTI contracts to post a 1.2% gain for the week. September Brent futures gained 1.8% for the week.

The dollar went on a rampage against the yen Friday, as imminent stimulus measures in Japan weakened their currency, and robust corporate earnings reports in the US boosted the dollar. The greenback posted its best week against the yen in 17 years.

Today the DXY dollar index, as measured against a weighted basket of major currencies, is flat and unchanged.  This morning on Wall St., the Dow and S&P 500 attempt to build on record gains, while news that Japan's SoftBank is buying smartphone chip maker ARM for $32.3 billion has the Nasdaq, handily outpacing both.

 

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.

This site uses cookies for analytics and to deliver personalized content. By continuing to browse our site, you agree that you have read and understand our Privacy Policy.