Disclaimer: All information on this section is of a general nature. Before making any investment decision, you should consult your adviser.
Daily Resources Overview
Gold and silver prices are firmly higher in early-afternoon U.S. trading Thursday, lifted in part by the U.S. dollar index that is selling off again today. Gold is poised to close at a 3.5-month high close today, with silver at a four-week high close. Chart-based buying was also featured in both metals today as their technical postures have markedly improved this week. Ideas of more accommodative global monetary policies amid slowing world economic growth remain supportive elements for the safe-haven metals. August gold futures were last up $10.30 an ounce at $1,343.80. July Comex silver prices were last up $0.119 at $14.91 an ounce.
The European Central Banks left interest rates unchanged at its regular monetary policy meeting, but the meeting leaned dovish. The ECB extended the length of time that bank officials expect interest rates to remain at current levels. The interest rate on the main refinancing operations and the rates on the marginal lending facility and deposit facility will remain at 0.00%, 0.25% and minus 0.40%, respectively.
World government bond markets continue to see their yields drop amid very low inflation and worries about slowing global economic growth and the resulting easier monetary policies from the major central banks. The German 10-year bond yield dropped to minus 0.232% today. In overnight news, the Euro zone reported its first-quarter GDP at up 0.4% from the fourth quarter and up 1.3%, year-on-year. Those numbers were right in line with market expectations but still very tepid.
The key “outside markets” today see the U.S. dollar index trading solidly lower. The greenback bulls have faded recently and the near-term price uptrend for the USDX has been negated to suggest a market top is in place. Meantime, Nymex crude oil prices are near steady and trading around $51.50 a barrel after dropping to a nearly five-month low on Wednesday. Traders are awaiting Friday morning’s employment situation report for May from the Labor Department—arguably the most important U.S. data point of the month. The non-farm jobs component of that report is forecast at up 180,000. Wednesday’s ADP national employment report for May showed only 27,000 jobs added in the month. That anaemic number has many looking for a weaker number in Friday’s jobs report.