Tech Carries Equities Higher, Precious Metals Steady - Gainesville Coins News
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Tech Carries Equities Higher, Precious Metals Steady

blog | Published On 6/5/2018 9:57:39 AM by Everett Millman

The gold price has continued to trade sideways just above $1,290 per ounce to start the first week of June.

Spot gold held unchanged at $1,291/oz Tuesday morning. Silver prices were also flat at $16.38/oz.

The Platinum Group Metals each slumped, however: Palladium lost 1.2% (-$12), sliding back to $980/oz, while platinum traded at $895/oz, down by $6 (-0.7%).

Broader Markets Lag Behind Tech Giants

Following the uniformly strong employment data Friday, stocks continued to track higher this week.

In other jobs news, the broader U6 unemployment rate is down to its lowest in 17 years at 7.6%.

Wall St was up Monday as the Russell 2000 index hit an all-time high. However, the market is primarily being carried higher by a rally in tech stocks.

Shares were about 0.3% higher in Europe. The German DAX rose 0.7% but London's FTSE 100 fell into the red by 0.5%.

Equities were barely higher overnight in Asia with the exception of the Shanghai Composite, which rose 1.0%.

Trade tensions are still the defining feature of the current geopolitical landscape. A potential dispute between the U.S. and Canada has taken center stage at the summit of G-7 countries currently being held in Quebec.

President Trump has indicated that if NAFTA talks collapse, he may seek separate bilateral trade deals with Mexico and Canada.

Mexico has threatened its own tariffs against U.S. products such as pork and bourbon.

Treasurys were up slightly as the yield on the 10-year bond dipped two basis points to 2.92%.

Bonds also rose in the EU as investors hoped for a steady transition to a new government in Italy.

Oil Prices Fall, OPEC May Boost Output

oil glutCrude oil continued to ease lower Tuesday, as well. The July WTI contract fell more than $1 (-1.6%) yesterday after falling 3.1% last week.

WTI was off 0.6% again in early trading to about $64.40/bbl, compared with a 1.5% loss for Brent crude.

The slump for oil is being influenced by the news that the U.S. is requesting that OPEC increase its crude output by about one million barrels per day.

Shanghai's crude contract last traded around $72/bbl, or 461.8 yuan per barrel.

Commodities may have been weighed by a slightly stronger USD. The dollar rebounded from a two-week low on the DXY index, trading up slightly to 94.1.

This sent the euro lower as the common currency fell below $1.167. The pound sterling was actually up 0.3% to $1.335.

Despite the mostly steady performance of the stock market during the April-May-June quarter, the various sources of uncertainty in the economy could spell more volatility for stocks going forward.

 

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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