Spot Gold Dips Near $1,340 On Tax Day Tuesday - Gainesville Coins News
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Spot Gold Dips Near $1,340 On Tax Day Tuesday

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Spot Gold Dips Near $1,340 On Tax Day Tuesday

The precious metals were mixed at Tuesday's opening bell as investors seemed less risk averse amid strong Wall St earnings.

Spot gold fell about 0.3% (-$4) to $1,341 per ounce in early trading.

However, the silver price was up 5¢ (+0.3%) to about $16.70/oz.

Platinum ($928/oz) and palladium ($995/oz) each showed virtually no movement.

Palladium's recent rise is due in part to possible economic sanctions against Russia, the world's top producer of the metal.

However, the White House is thus far holding off on implementing any new sanctions just yet.

Housing Data and Earnings Give Stocks a Boost

The Department of Commerce reported that housing starts rose 1.9% in March, beating expectations.

Construction of single-family homes lagged, but building of apartments buoyed the data overall.

Permits to build new housing were up 2.5% during the month.

Corporate earnings will continue to carry the day in trading today. Netflix (NFLX) and Goldman Sachs (GS) both reported impressive first-quarter earnings.

Stocks in the U.S. closed up about 0.8% yesterday and continued to move sharply higher on Tuesday.

European stocks rallied this morning by as much as 1%, but London's FTSE 100 trailed behind (+0.3%).

Shares were down across most of Asia overnight, including Shanghai (-1.6%). The benchmark Shanghai Composite index has lost over 7.5% over the last month.

The dollar reversed earlier losses to trade up 0.2% at 89.6 on the DXY index.

Unsurprisingly, the euro slipped 0.2% to $1.235. The Japanese yen was flat at about ¥107.1 per dollar.

The Bank of England is expected to finally raise interest rates at its next policy meeting. This helped the British pound resist any downward pressure from the USD.

Inflation in the U.K. has hit 2.9%, seeming to justify the rate hike. Unemployment is down while wage growth has accelerated to a three-year high.

Five different Fed members will be speaking today, as well.

Tax Day Arrives, Diplomatic Ties In Asia Improve

President Trump will meet with Japan's prime minister, Shinzo Abe, at the president's Mar-a-Lago resort in Florida today.

The two leaders are expected to talk trade and North Korea over a round of golf.

North Korea and South Korea could announce a major breakthrough in peace talks at an upcoming summit.

The two Koreas have technically never ended their war from the 1950s, agreeing only to a ceasefire that has largely held for more than six decades.

Treasurys fell slightly as the 10-year yield inched higher to 2.84%. Yet government bonds rose across Europe and the rest of the Americas.

Technical analysis of the precious metals reveals that gold futures are still seeing strong resistance anytime prices get above $1,350/oz.

Non-agricultural commodities lost ground for the most part on Tuesday.

Crude oil prices traded another 0.5% in the red. WTI crude was around $65.85 per barrel while Brent crude held right at $71/bbl.

The Energy Information Agency (EIA) is forecasting higher U.S. oil production in May. Output is expected to reach almost 7 million barrels per day, augmented by shale oil projects.

Remember: today is the deadline for Americans to file their 2017 tax returns.

 

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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