Gold snapped a six-day losing streak in new York trading Wednesday, and the morning has ridden the woes of the dollar to break the $1,300 level. The dollar hit a seven-week low overnight. Both gold and silver are seeing some short covering on the solid bounce this morning.
China reported better than expected import and export numbers for July, which boosted commodities. Precious metals caught some of that updraft as well. Chinese exports were reported as growing 5.1% year over year in July, against expectations of 3.0%. Imports were up a big 10.9%, which is what excited commodities.
The Nikkei was down nearly 1.6% overnight, as the yen surged to 96 to the dollar, and ahead of options expiries tomorrow.
The euro hit a seven-week high against the dollar, and was trading this morning at 1.336. The ECB predicts that Eurozone economic contraction will slow through the end of the year, and expects economic expansion to finally return in 2014.
First-time jobless claims in the US rose slightly last week, reporting 333,000 newly unemployed, compared to 328,000 new claims the week before. However, the rolling four-week average is down to 335,500, the lowest level since November 2007. Continuing claims rose 67,000 to 3.02 million, and extended claims shrank 48,800 to 1.52 million.
We're solidly in the annual August doldrums in the market. Gold is basically running inverse to the dollar, which looks to be the major influence on precious metals until next month's episode of "Fed Fear."