While President Trump's comments about interest rates have roiled markets, the precious metals rebounded to end the week.
Spot gold rose almost $8 (+0.6%) to $1,230/oz this morning.
Both platinum and palladium surged about 2.2%, erasing most of Thursday morning's losses. Spot silver also rounded 0.8% to $15.40/oz.
However, much of the commodity sector has been under pressure from the U.S. dollar this summer.
Trump Criticizes Powell, Fed
Trump broke with precedent by wading into the debate over monetary policy. He said he was unhappy with interest rates going up when his administration has done so much work to lift to economy.
Traditionally, the central bank is supposed to be independent of political influence.
In the past, Trump has also suggested that the Federal Reserve kept rates low as a favor to the previous administration. Yesterday he criticized the Fed and Chair Powell for essentially doing the opposite, and in response stock markets in the U.S. tumbled. The S&P 500 pulled back from a five-month high.
The dollar also fell after rallying throughout the week. The DXY index was off 0.6% to below 94.6.
The euro, yen, and pound sterling all rallied against the USD by about the same margin.
Nonetheless, government bonds saw slightly less demand. The yield on the 10-year Treasury rose by three basis points to 2.87%.
Trade War Continues
The president also featured prominently in economic developments abroad.
Trump ramped up the trade war rhetoric, threatening to place tariffs on every dollar of U.S. trade with China—which totals about $500 billion annually.
Since the first tariffs were announced in March, a 20% spread had opened up between Wall St and Chinese stocks. In the time since, the S&P 500 is up 5.3% while the Shanghai Composite has tumbled 15.7%.
In the meantime, the flattening yield curve in the U.S. is now driving the same trend in the U.K., India, and elsewhere.
Stocks were mixed overnight in Asia again, but the roles were reversed: Japanese indices closed in the red while shares in Shanghai rallied 1.9%.
European equities were off about 0.6% in early trading, but the German DAX index slumped 1.3%.
With the dollar falling on Friday, commodities finally made up some ground. Brent crude reclaimed $73 per barrel while WTI crude once again approached $70/bbl.
Precious metal futures also pointed about 0.5% higher.
In international news, finance ministers and central bankers from G20 nations are meeting in Argentina today.
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