Precious Metals Hold Onto Gains After North Korea Summit Canceled - Gainesville Coins News
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Precious Metals Hold Onto Gains After North Korea Summit Canceled

blog | Published On 5/25/2018 10:14:52 AM by Everett Millman

Global markets gyrated yesterday after President Trump pulled the plug on a planned meeting with North Korea's Kim Jong-un.

The precious metals rallied in response, and still held all of their gains Friday morning.

Spot gold traded virtually unchanged at about $1,304 per ounce. The silver price was down 0.5% (-9¢) to $16.55/oz.

Platinum and palladium both slipped about 0.6% in early trading.

Markets Steadier After Summit Cancellation

Stocks on Wall St fell Thursday after the Korean summit plans collapsed. Treasurys and gold rallied on safe-haven fears.

The 10-year T-note yield plunged another five basis points to 2.92% this morning.

Any escalation of hostilities with the DPRK could strain the relationship between the U.S. and China given that the People's Republic is North Korea's biggest trading partner.

Still, statements from both President Trump and Kim indicated that the two sides are still open to future talks.

Asian equities posted only modest losses overnight. U.S. markets opened about 0.2% in the red.

Most indices in Europe were lower during Friday's session with the exception of the German DAX index.

In other economic news, the Department of Commerce reported that durable goods orders dipped 1.7% during April.

However, there was some cause for optimism in the data: When transportation (planes and automobiles) was stripped out, orders actually rose 0.9%. Overall business investment (also called core capital goods orders) was also 1% higher month-on-month.

Oil Prices Plunge on Possible OPEC Agreement

OPEC meeting in Vienna, Austria Photo: Day Donaldson

Energy markets sank on news that OPEC and Russia are considering boosting oil output after sticking to production cuts for more than a year and a half.

Reuters reports that output from the bloc could increase by as much as one millions barrels per day.

WTI crude and Brent crude each plunged roughly 2.5%, trading at $68.80/bbl and $76.95/bbl, respectively.

Aside from the precious metals, commodities were sharply lower across the board.

A resurgent dollar contributed to the losses. The USD rose to nearly 94.1 on DXY index Friday.

Britain's pound sterling was off 0.5% to $1.33, but the Japanese yen was essentially flat at ¥109.2.

The euro slumped 0.6% to trade below $1.165, the lowest in nearly seven months.

Today is the first day that the European Union's new internet privacy law, known as the General Data Privacy Regulation (GDPR), goes into effect.

While the regulation is mainly targeted toward tech companies, some online newspapers have suspended operations in Europe, including the Chicago Tribune and LA Times, over concerns about how they collect visitors' data.

 

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.

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