Gold prices are trending around the $1,225 mark this morning, as markets across the board are taking a break from huge moves over the last week. Spot gold is more and a half-percent higher, while spot silver is up a little more than 1%.
Those strong retail sales figures pulled the US dollar back into positive territory, after the greenback has sold off on opinions that it had gained too much, too quickly in the last week. This keeps the dollar rally intact, working to clinch a fifth straight day of gains.
Also on the currency front, the British pound was pummeled on revelations that the British government is flying blind in handling Brexit. According to a leaked memo, there is no Brexit plan. The selloff accelerated on a report that consumer inflation in the UK rose less than expected, rising 0.9% instead of the expected 1.1%.
The ever-weaker euro and ever-stronger dollar has combined to start whispers of euro-dollar parity in the next 12 months, if not sooner.
Bond prices are higher, after seeing a tumble that pulled $1.4 trillion worth of negative-yielding global debt back into positive territory. US Treasury yields are easing for the first time since the November 8th election that saw Donald Trump clinch the White House.
Oil prices have jumped more than 3% this morning, recovering from a thrashing that has seen prices hit an eight-week low. The reason? Same as always, rumors spread by OPEC. On the flip side, the remarkable base metal rally has suddenly reversed, with iron ore falling more than 9% in Asian trading. Copper prices, which had been rallying since before the election, have also reversed this morning. As with other sectors, it's a case of overheated rallies running out of steam.
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