Bad Numbers Boost Gold: Morning Market Update February 27 - 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

Bad Numbers Boost Gold: Morning Market Update February 27

blog | Published On by
Bad Numbers Boost Gold: Morning Market Update February 27

globe-and-goldGold got a lift this morning to recover a substantial portion of yesterday's gains that were given up before the ending bell, as last quarter's GDP was revised down from 2.6% to 2.2%, and the Chicago PMI plunged from 59.4 last month to 45.8 this month -- a five and a half year low.

European stocks are up, as EU price data indicates the danger of deflation may be easing, and Germany votes in favor of a four-month extension to the Greek bailout.

Wall St. is struggling again today in the face of depressing economic data, despite perceptions that the Fed is in no hurry to raise benchmark interest rates.

Yesterday in the Markets

US stocks were hit yesterday by a leap in first-time jobless claims, and the first drop in consumer prices since 2009. After compensating for the 18% plunge in gas prices, consumer inflation was barely above zero. The dollar soared like an eagle to a one-month high yesterday, banking an increase of over 1% against a basket of currencies. This, combined with profit-taking in New York and hawkish statements by Fed officials, reversed a gold rally that had started in Europe earlier in the day.

Factors Affecting Gold Today

After giving in to its creditors over bailout terms, the leftist Syriza government of Greece now must contend with a public that feels they were lied to. The IMF has just told Russian president Vladimir Putin how to win the war in Ukraine, by warning the Ukrainian government that bailout money would dry up if the war continues.

Oil prices are rallying today, as the dollar trades in the red after yesterday's spectacular performance. Both of these events are bullish for gold. Stocks on Wall St. are struggling again today, as fear over a cooling economy offsets relief over the Fed seeming to push back an interest rate hike.

looking-aheadLooking Ahead

PMI data out of Japan and China will be released over the weekend, while Monday brings us a slew of PMI reports out of Europe and consumer spending numbers in the US. Since consumer spending accounts for around 70% of the US economy, analysts will be anxious to see what everyday Americans did with the money that they saved due to lower gasoline prices.

by Steven Cochran

Gainesville Coins Portfolio Tracker and Financial News

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.