Wednesday morning saw the gold price once more hit $1,290/oz, advancing again thanks to a softer U.S. dollar. The same principle applied to the other precious metals, as silver prices added 6¢ to trade back where the argent metal started on Tuesday morning around $17.05/oz. Platinum and palladium were up slightly, trading at $980/oz and $925/oz, respectively.
Much of this action in the precious metals can be attributed to the dollar. Both the euro and yen clawed back some ground against the USD during today's session, with the latter once again near ¥109 per dollar and the former again approaching $1.18. This pushed the DXY index down 0.25% to 93.3. Treasurys rose slightly, sending the benchmark 10-year yield lower to 2.19%.
Stocks in the U.S. opened about 0.3% in negative territory this morning after posting modest gains on Tuesday. Overseas indices were mixed. There are growing murmurs about whether or not equities in the U.S. have reached a top—implying that they are destined to fall, perhaps in a precipitous cascade. Not only has the current bull market on Wall St persisted for a seventh year, but each major U.S. index has hit successive all-time highs throughout 2017. In terms of the cyclical nature of business conditions, the stock market may be poised for a correction.
One of the big news stories on Wednesday that falls into this narrative is the tough sledding that the advertising market has been struggling to come to terms with. Not only are Google, Netflix, and other digital platforms disrupting the traditional business model of how advertising works, but investors are also souring on the world's largest advertising firm, WPP. The company saw its shares sink 12% in early trading on Wednesday due to greatly reduced ad spending by its clients, causing WPP to lower its forward guidance.
Naturally, not a day goes by anymore without something controversial being stirred up in the nation's capital. After firing up his supporters at a rally in Phoenix, Arizona yesterday, President Trump was on the offensive again on Wednesday. The president is raising the spectacle of another government shutdown if Congress refuses to appropriate greater funding to his border wall initiative. Much like the pressure President Trump placed on Pakistan during his speech on the U.S. strategy in Afghanistan, Trump is again using leverage and his negotiating skill to navigate the halls of power in Washington, D.C.
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.