Gold slips to 1-year low

Irving Hamilton
July 21, 2018

It ended 0.9 percent higher.

Overnight on Wall Street, the Dow edged up 0.2 percent but the S&P 500 lost 0.1 percent as energy shares were hit by the drop in oil that offset a jump in financials.

The unemployment rate at 4 percent is near a two-decade low.

Chinese shares extended losses after dropping the previous day on soft economic data.

In individual stocks, shares of Air China fell 1.5 percent in Shanghai.

Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.15% to 794.01 tonnes on Monday.

But both main contracts fell again following a report late Tuesday by the American Petroleum Institute that U.S. crude stockpiles had increased by more than 600,000 barrels last week.

Still, wage growth has been sluggish and has not yet recovered to pre-crisis levels, he said.

"Economic reports. are suggesting that activity in the second quarter might have been better than expected", Jankovskis said.

Jerome H. Powell took office as Chairman of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term.

Lost Vegas in remarkable last-minute dash to Carnoustie
When the visa finally arrived on Wednesday, his flight connection through NY was cancelled, forcing him to route through Toronto. He was two over after three holes, carding one birdie against six bogeys, and shot a five-over-par 76.

In late morning trading, the dollar index, a gauge of its value against a basket of six major currencies, was up 0.37 percent to 95.432, after touching a one-year high at 95.652.

The dollar index rose 0.18 per cent, to 95.113 after rising as high 95.407.

The International Monetary Fund warned on Monday that escalating trade tensions following US tariff actions threaten to depress medium-term growth prospects. Economists believe overall economic growth, as measured by the gross domestic product, could top 4 percent in the just-concluded April-June quarter.

"He will undoubtedly acknowledge some downside risks associated with the administration's trade warmongering, but he will likely try to avoid sounding critical of the administration".

Spot gold was down 0.2 per cent at $1,224.16 an ounce.

The U.S. Treasury yield curve hit its flattest in over a decade as Powell's upbeat economic view supported more rate hikes, with 2-year yields climbed to their highest in almost a decade.

The two-year Treasury yield stood near 2.624 percent, its highest since August 2008 scaled on Wednesday. Moreover, the Swiss Franc also gained around 0.34 percent against the U.S. Dollar to end the session higher at 0.99999 USDCHF at the close.

At the time of writing, the Euro was up 0.04% to $1.1716, with any chatter from the Oval Office on European Union tariffs a possible influence later in the day as the Helsinki dust settles.

Copper prices plunged to one-year lows as fund selling accelerated due to worries about demand from the trade tussle between the USA and top consumer China.

Other reports by

Discuss This Article