Gold tallies three-session rise, but ends week flat

Gold climbed for a third session in a row Friday, but its rise on the back of declines in the U.S. dollar and recent weakness in assets perceived as risky wasn’t enough to give the metal’s prices a boost for the week.

August gold GCQ7, -0.10% rose $7, or 0.6%, to settle at $1,256.40 an ounce, with futures down a dime from last Friday’s settlement, after posting losses in each of the past two weeks.

July silver SIN7, +0.02% gained 13.8 cents, or 0.8%, to $16.647 an ounce. For the week, silver lost a bit more than a penny.

Gold is consolidating from the recent drawback, but is still in a correction mode, to be clear,” said Nico Pantelis, head of research at Secular Investor.” We should be nearing the bottom of the current correction in the next week or two, from where a bigger climb should start. We think August could be an ideal month to kick-start this new uptrend in gold, which could last till the end of the fall.”

A softening dollar helped to give precious metals get a lift Friday, with the ICE U.S. Dollar Index DXY, +0.05% a measure of the greenback against a half-dozen currencies, down 0.4%. Slack in the dollar can give commodities priced in the currency a boost, making them cheaper for buyers using weaker currencies.

However, yields on U.S. government bonds, including the 10-year benchmark Treasury note TMUBMUSD10Y, +0.08% have remained persistently low. That’s a reflection of Wall Street’s doubt the U.S. central bank can lift rates quickly, as questions about sluggish inflation and below-potential consumer spending continue. And mixed data on Friday only added to the cloudy picture serving as the backdrop to Fed decision-making. May new-home sales roared back from a soggy April, while a purchasing managers index fell to a nine-month low in June.

Offering gold another reason to rise Friday, St. Louis Fed President James Bullard said the Fed can afford to stop raising short-term interest rates and wait and see how economic developments play out.

Meanwhile, precious metals have also benefited over the week from haven bids, amid concerns about the impact of falling crude-oil prices CLQ7, +1.14% which have recently weighed on equity benchmarks, the Dow Jones Industrial Average DJIA, -0.01% and the S&P 500 index SPX, +0.16%

Read: Will falling oil prices help bond investors beat the Fed?

Also on Comex Friday, July copper HGN7, -0.06% rose 2.5 cents, or 1%, to $2.624 a pound, ending around 2.3% higher on the week, while July platinum PLN7, -0.23% edged up $3.80, or 0.4%, to $929.40 an ounce—up 0.3% for the week. September palladium PAU7, -0.27% bucked Friday’s trend to end at $856.65 an ounce, down $23.85, or 2.7%, which gave it weekly loss of 1%.

Among the exchange-traded funds, the SPDR Gold Trust GLD, +0.43% was up 0.5%, lifting prices for the week by about 0.1%. The iShares Silver Trust SLV, +0.70% rose 0.8% in Friday dealings, and the VanEck Vectors Gold Miners GDX, +1.70% climbed 1.8%.

CAD: A Game-Changing Month For CAD; What’s Next? – ING

ING FX Strategy Research notes that June has been a game-changing month for our CAD outlook.

“Risks of a perfect storm brewing over the summer period have reduced with concerns over financial stability and NAFTA renegotiations easing.

Add to this a less dovish BoC and one may argue that we’ve seen a trifecta of ‘good’ news for the CAD. Both Governor Poloz and his Deputy (Wilkins) have hinted that policy rates may have bottomed; this hawkish reassessment has triggered a clear out in short CAD positions – which we note were at a 5-year high at the end of May,” ING adds.

What’s next for CAD?

ING argues that although the near-term outlook for the loonie has turned positive, they are wary of hastily calling for any cyclical turning point.

As such, ING sees USD/CAD returning to 1.36 in 3-month on the back of soft oil prices and weaker macro data.

Nasdaq Composite trades higher after two-day selloff

U.S. stocks opened higher on Tuesday, after two-day slump that was driven by the selloff in technology shares. The Nasdaq Composite, which fell nearly 3% over the past two sessions was set to recover some of the losses. Gains on Wall Street were tepid, however, as investors wait for the Federal Reserve’s policy meeting with many expecting a rate hike on Wednesday. The S&P 500 SPX, +0.45% opened 6 points, or 0.3%, higher at 2,435. The Nasdaq Composite COMP, +0.73% was up 37 points, or 0.6%, to 6,213 at the open. The Dow Jones Industrial Average DJIA, +0.44% began the session up 40 points, or 0.2%, at 21,276. Among the biggest gainers, NVIDIA Corp NVDA, +0.95% jumped about 3% at the open. The stock is up more than 200% over the past 12 months.

Dow industrials set fresh intraday record powered by Goldman and Visa

The Dow Jones Industrial Average on Tuesday carved out an all-time high in intraday trade, supported by a jump in shares of Goldman Sachs and Visa, as the market tries to bounce back from a technology-fueled slump. The gains also come ahead of the start of a two-day meeting of the Federal Reserve’s policy-setting committee, which is expected to result in a quarter-point rise in benchmark interest rates and an update to the central bank’s outlook for the U.S. economy. Against that backdrop, Goldman Sachs Group Inc.’s shares GS, +1.03% were adding about 15 points to the price-weighted Dow DJIA, +0.44% helping it set an intraday record of 21,307.41. The Dow last set an intraday record and closed at an all-time high on June 9 and has ended higher in four of the past five sessions. Shares of Visa Inc. V, +1.69% which is viewed as a tech company rather than a financial company by some, also added about 10 points to the index. The moves come as the tech sector, as measured by the Technology Select Sector SPDR ETF XLK, +0.72% attempts to rebound from its worst two-session tumble in months. The S&P 500 index SPX, +0.45% meanwhile, is up 0.3% at 2,435, while the battered tech-heavy Nasdaq Composite Index COMP, +0.73% gained 0.5% at 6,207.

Dow, S&P 500 close at records as tech stocks rebound

The Dow and the S&P 500 closed at records Tuesday as technology shares rebounded following a two-day decline. But the market’s focus was on the Federal Reserve’s two-day monetary policy meeting and Attorney General Jeff Sessions’ testimony before the Senate Intelligence Committee.

The Dow Jones Industrial Average DJIA, +0.44% climbed 92.80 points, or 0.4%, to close at 21,328.47 after touching an all-time intraday high of 21,332.77. The S&P 500 index SPX, +0.45% added 10.96 points, or 0.5%, to finish at 2,440.35, also trading in record territory, supported by materials and information technology sectors.

The Nasdaq Composite Index COMP, +0.73% rose 44.90 points, or 0.7%, to end at 6,220.37.

Technology shares fell sharply Monday extending a downturn from Friday, weighing on broader indexes, particularly the Nasdaq, which maintains a higher concentration of tech names. Despite that, major indexes have been in a pronounced uptrend of late.

The tech selloff didn’t spread to other sectors in a notable way. Instead, it was countered by a move into the energy and financial sectors, which Chris Weston, chief market strategist at IG, said could potentially offer better returns.

Weston doesn’t really think the 10% decline “that many had been talking about on Friday,” will come to pass, he said in a note to clients.

Fed meeting kicks off: The two-day Federal Open Market Committee meeting will wrap up Wednesday with a news conference hosted by Fed Chairwoman Janet Yellen. Market observers are nearly unanimous in the view that the fed-funds rate will be raised, with a nearly 100% chance of an interest-rate increase, according to the CME Group.

“We are seeing a little of a move back up mainly due to expectations from the Fed meeting,” said Chris Gaffney, president at EverBank World Markets.

With an interest-rate increase priced in, investors are comfortable with the idea that the Fed will remain cautious to ensure that tighter monetary policy doesn’t hinder growth, he said.

The Fed “has been confronted recently with softer inflation data and only scattered evidence of an expected reacceleration of activity,” David Joy, chief market strategist at Ameriprise Financial wrote in a note. “While few expect the Fed to refrain from acting this time, what it must say about upcoming meetings and the possible timing of the start of unwinding its balance sheet will be scrutinized.”

Meanwhile, Sessions is categorically denying any private meetings with Russians in his testimony to the Senate. The Justice Department’s probe into Russia’s efforts to interfere in 2016 election is seen as a potential headwind for the market.

Any “shocking” revelation from the testimony that could hamper President Donald Trump’s administration from introducing further policy change could send stocks back into negative, said Gaffney.

Economic data: The National Federation of Independent Business reported small-business sentiment was steady in May. Separately, the producer-price index was flat last month following a sharp 0.5% increase in April, as had been expected.

Stock movers: Shares of Facebook Inc. FB, +1.51% added 1.5%, Google parent Alphabet Inc. GOOGL, +0.90% was up 0.9%, and Amazon.com Inc. AMZN, +1.65% was up 1.7%.

Eli Lilly & Co. LLY, +0.43% rose 0.4% after the company said its pain drug with Pfizer Inc. PFE, -0.37% had received fast track designation from the Food and Drug Administration.

Cheesecake Factory Inc. CAKE, -9.86% shares slumped 9.9% after the company cut its second-quarter outlook.

Other markets: European stocks SXXP, +0.55% settled firmly higher, buoyed by a tech rebound. Asian markets ADOW, +0.19% shook off Wall Street’s Monday woes and mostly rose.

The dollar DXY, -0.04% fell against the British pound GBPUSD, -0.0941% which rose after a bigger-than-expected gain in U.K. inflation. Oil prices CLQ7, -1.01% finished higher for a third straight session, while gold futures GCQ7, +0.18% booked its fifth straight loss in a row.

 

Gold ends higher, then pulls back as Fed Beige Book ups odds of June rate hike

Gold prices settled higher Wednesday, then pulled back in electronic trading as the U.S. Federal Reserve’s snapshot of economic activity around the country appeared to raise the prospects for June interest-rate hike.

Released after the price settlement for gold on Comex, the Beige Book report, which gathers economic anecdotes from across the Fed’s regional districts, shows that the U.S. economy expanded at a “modest to moderate” pace through late May.”

August gold GCQ7, +0.90% rose $9.70, or 0.8%, to settle at $1,275.40 an ounce. It traded at $1,272.90 in electronic trading shortly after the release.

Gold futures, based on most-active contract close of $1,268.30 on April 28, rose roughly 0.6% for the month.

Gold investors have been watching the “stock market rally, which has run so high for so long, and they’re eyeballing the Fed agenda, coupled with Trump news and the fact that we’re living in the midst of the seasonally-weak months of the year for the DJIA DJIA, +0.29%  and S&P 500 SPX, +0.37% ” said Adam Koos, president of Libertas Wealth Management Group. “For those reasons, it wouldn’t surprise me to see gold continue its intermediate-term uptrend since the beginning of 2017.”

Gold prices settled lower on Tuesday, pulling back from one-month highs scored last week when geopolitical headlines lured investors back to the relative security of the metal.
The ICE U.S. Dollar Index DXY, -0.55%  was down 0.3% Wednesday, poised for a loss of 2% for May. A weaker dollar often provides support for gold, which is most actively traded in the green.

“Follow the investor and ignore the geopolitical risk unless there is a war bugle” on the Korean Peninsula and the South China Sea, he said.

Rounding out metals action, July silver SIN7, +1.53%  fell 2.1 cents, or 0.1%, to $17.406 an ounce, but gained about 0.8% for the month. July copper HGN7, -0.43% ended at $2.58 a pound, up 1.6 cents, or 0.6%—paring its monthly loss to less than 3 cents. July platinum PLN7, +2.88%  rose $9.20, or 1%, to $950.30 an ounce, tacking on less than 0.2% for the month, and September palladium PAU7, +1.83%  added $13.30, or 1.7%, to $815.95 an ounce, but still lost 1.3% for the month.

The SPDR Gold Trust GLD, +0.74%  rose 0.6%, trading less than 0.1% higher for the month, while the iShares Silver Trust SLV, +1.28% fell 0.5%, cutting its gain for the month to 0.5%. The VanEck Vectors Gold Miners ETF GDX, +0.71%  climbed by 0.8%, poised for a rise of around 2.5% for the month of May.

Dow’s late-afternoon surge into record territory powered by Goldman, UnitedHealth

The Dow Jones Industrial Average jumped on Thursday to record territory, fueled by a rebound in shares of Goldman Sachs, Wednesday’s worst performer, and a rally in UnitedHealth. The Dow components combined to contribute more than 50 points to the blue-chip’s 110-point rally. For Goldman Sachs Group Inc. GS, -0.79% the rise marks a comeback for shares that logged Wednesday’s worst performance, among the Dow DJIA, +0.29% components, cutting 50 points from the benchmark, and pushing the investment bank’s stock to a six-month low, amid worries about ultralow bond yields [BX: TMUBMUSD10Y] and fretting about a slump in second-quarter trading activity, following warnings from a pair of bank executives. On Thursday, Goldman was adding 27 points, while UnitedHealth Group Inc. UNH, -0.11% was contributing about the same amount to the Dow’s clamber higher. Overall, the stock market was getting a boost from an upbeat private-sector employment rate, ADP, which may augur well for the Labor Department’s closely watched nonfarm-payrolls report due Friday. The Dow’s advance also comes as the S&P 500 index SPX, +0.37% and the Nasdaq Composite Index COMP, +0.94% touched fresh intraday records. For its part, the Dow was on pace to close above its own closing high, up 0.5% at 21,120, which would mark its first record finish since March 1.

Nasdaq, S&P 500 edge higher to close at records

The tech-heavy Nasdaq and the S&P 500 closed at records Friday as stocks finished higher for the week ahead of the Memorial Day holiday. The S&P 500 index SPX, +0.37% finished up 0.75 points at a record 2,415.82, led by gains in the consumer-staples and consumer-discretionary sectors. The Nasdaq Composite Index COMP, +0.94% closed up 4.94 points, or less than 0.1%, at a record 6,210.19. Both benchmarks finished for a seventh day of gains. The Dow Jones Industrial Average DJIA, +0.29% declined 2.67 points to close at 21,080.28, less than 40 points shy of its March 1 closing record. For the week, the Dow finished up 1.3% and the S&P 500 gained 1.4%, both snapping a two-week streak of finishing lower, while the Nasdaq advanced 2.1%.