Risk-On Sentiment Knocks Gold Price Lower - Gainesville Coins News
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Risk-On Sentiment Knocks Gold Price Lower

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Risk-On Sentiment Knocks Gold Price Lower

Investors continued to pile back into the global stock markets on Monday, sending the precious metals modestly lower.

The gold price fell about 0.5% (-$6) to below $1,317 per ounce.

Gold tumbled from as high as $1,324/oz overnight.

Similar action was seen with silver. The silver price was off by 0.8% (-13¢) to $16.44/oz.

Meanwhile, platinum was down 0.7%, sliding below $960/oz. Palladium slumped by almost twice as much (-1.3%), trading back at $980/oz.

U.S. Equities Extend Gains on Monday

An especially strong nonfarm payrolls lifted U.S. markets on Friday.

Not only did the Dow Jones cross back above 25,000 for the first time since the final trading session of February, but the Nasdaq hit an all-time high.

Bond indices

The risk-on sentiment still pervaded stock exchanges on Monday morning. Wall St opened comfortably in the green.

Bonds are seeing their weakest demand since 2009 amid this chase for returns.

A large tranche of $62 billion in new debt will be auctioned by the Treasury Department this week, as well.

The 10-year T-note yield was unchanged at 2.89%.

Market expectations for higher interest rates in 2018 remained strong.

This perspective picked up more steam as noted policy dove Lael Brainard, a member of the Fed's Board of Governors, shifted toward a more hawkish outlook in a speech last week.

The U.S. dollar was also flat around 90.1 on the DXY index for the second straight session.

Global Markets Follow Wall St Higher

Across the Atlantic, the British pound sterling was up 0.3% against the dollar to just shy of $1.39.

The yen also gained 0.3% to ¥106.5. The euro held unchanged at $1.23.

Shares moved modestly higher in Europe but were down 0.2% in London.

Coincidentally, the latest data showed that housing prices in London fell by most since 2009. It remains one of the most expensive metro areas in the world, nonetheless.

In "trade war" news, the EU and Japan will pursue exemptions from President Trump's recently announced tariffs.

Copper was off 0.4% but aluminum prices only traded 0.1% in the red.

Indices surged in Tokyo, where the Nikkei 225 closed up 1.65% and the TOPIX jumped 1.5%.

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Stocks also rallied 1.9% in Hong Kong. The Shanghai Composite was only up modestly by 0.45%, however.

The world's largest-ever initial public offering (IPO) by the state-owned oil giant Saudi Aramco will likely be delayed until 2019. The size of the IPO is estimated to top $2 trillion.

In the meantime, crude oil oscillated again: both global benchmarks sank 1% on Monday after a dramatic 3% rally to close out last week.

Prices slipped on reports of record-high U.S. oil output and disunity within OPEC.

WTI crude traded at $61.44/bbl while Brent crude was at $64.83/bbl.

 

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.

About the Author

Everett Millman

Everett Millman

Analyst, Commodities and Finance
Managing Editor

Everett has been the head content writer and market analyst at Gainesville Coins since 2013. He has a background in History and is deeply interested in how gold and silver have historically fit into the financial system.

In addition to blogging, Everett's work has been featured in CoinWeek, Advisor Perspectives, Wealth Management, Activist Post, and has been referenced by the Washington Post.

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