Research

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 modestly down inearly-afternoon U.S. trading Monday. Trading has been choppy and on both sides of unchanged in bothmetals today. A rally in the U.S. stock market and a rebound in the U.S. dollarindex from its overnight weakness worked to pressure the precious metalsmarkets today. June gold futures were last down $3.50 an ounce at $1,295.00. May Comex silver was last down $0.01 at $15.10 an ounce.

On this first day of the second quarter, Asian and European stockindexes were also mostly higher overnight. China got some upbeat manufacturingdata to boost Asian and European shares Monday. The Caixin-Markit Chinapurchasing managers index (PMI) came in at 50.5 in March from 49.2 inFebruary. A reading above 50.0 suggests growth in the sector. The U.S.retail sales report, released this morning, showed a drop of 0.2% inFebruary, which was a downside miss from expectations of a 0.2% rise. Thisreport did put some brief downside price pressure on the U.S. dollar index,which in turn helped to lift gold and silver prices above unchanged for a shortwhile.

The Euro zone jobless rate was reported at 7.8% in February, whichis unchanged from January and in line with market expectations. The Euro zoneMarch consumer price index came in at up 1.4%, year-on-year, versus up 1.5% inFebruary. The March CPI reading was just a bit below trade expectations,continuing a worldwide theme of very low inflation. Last autumn, notions amongmany economists and market watchers were growing that inflation was creepingback into the world marketplace, and possibly becoming problematic. Those ideashave all but disappeared now. Commodity markets, including the precious metals,could use some higher inflation levels to help boost their prices.

Minneapolis Federal Reserve Bank President Neel Kashkari saidMonday now is not the time to lower U.S. interest rates. While he said risks tothe U.S. economy have increased, Kashkari said the Fed needs more time to seeif those risks pan out. He said he is worried about low inflation. Kashkari wasinterviewed by the Wall Street Journal and is one of the Fed’s more dovishmembers on U.S. monetary policy. The other key outside market today is in abullish posture for the metals markets, as Nymex crude oil prices are higher,hit a 4.5-month high and are trading above $61.00 a barrel.


 
2/04/2019 9:00:00 AM

Back to top