Gold prices are trading nearly unchanged from yesterday's close this morning, after rising as high as $1297 an ounce early Monday. That safe haven spike triggered some profit taking, which brought spot gold down to close at $1,284 even. Silver prices followed much the same trajectory, and are trending marginally lower than yesterday's close.
On the futures market, June gold contracts on the COMEX settled $3.40 higher, at $1,291.90. This is the highest close for gold futures since November 4th, just before the Presidential election. May silver contracts are also near 5-1/2 month highs, settling at $18.51 yesterday.
Platinum futures ended 1.4 higher, but palladium prices continue a recent downtrend on the COMEX, closing nearly 1% lower.
Precious metals and other commodities such as oil are benefiting from another bad day for the dollar. The greenback has fallen below the 100 level on the DXY dollar index, which compares the dollar to a weighted basket of six major currencies.
Safe haven demand in Europe is also supporting gold, after UK prime minister Theresa May unexpectedly called for a snap general election on June 8. She said that this election is to get a clear mandate from the people to negotiate Brexit terms with the EU. While her Conservative party leads in the polls, there is a chance that people suffering from "Regrexit" ("Leave" voters regretting their vote) could throw a monkey wrench into May's plan. The British pound surged on the news, contributing to the slump in the US dollar.
On Wall St, stocks broke out of their slump, with all three major indices closing 0.9% higher. This nascent rally is already in danger, as stocks opened moderately lower this morning. Traders are eyeing unimpressive earnings numbers from some companies, as well as realizing that tax reform is further away than originally thought, as President Trump focuses on international crises in North Korea and Syria.
Oil closed 1% lower on both the WTI and Brent contracts, as the US Energy Information Administration forecast that US shale operations will pump another 124,000 barrels of crude a day next month. This quick increase is attributed to the sustained expansion in the number of active fracking wells. Baker Hughes reported last week that another 11 new wells went online last week. That's the 13th straight week that the rig count has climbed. Over that time period, the number of active wells has increased from 522 to 683 wells, the highest level in two years.
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