Precious metals rallied in London on Tuesday morning as European stock markets also bounced with commodity prices. The U.S. dollar eased back on the currency market, as did major government bond yields.
This morning’s opening in precious metals was showing gold prices marginally higher, spot silver bids somewhat lower, and some mild gains in platinum and palladium. Rhodium fell $25 to $1,275 per ounce.
Precious metals prices headed lower this morning as the final trading session of the week got underway in New York. Yesterday’s “Fedspectations” turned down a notch as market participants had somewhat bigger news "fish" to fry this morning.
Commodity prices continue to reflect sour global growth expectations coupled with rebuilding hopes for additional Federal Reserve stimulus. Cycle-sensitive crude oil and copper on the defensive while gold and silver edge higher.
As with oil, gold and silver have carved out an increasingly significant correlation with the S&P 500 as the spectrum of assets that have benefitted from cheap funding through QE2 correct higher in tandem after last week's broad-based selloff.
As a result of a very good jobs report, gold and silver prices immediately headed somewhat lower today (at last check, gold was nearly $13 into negative territory, while silver fell 49 cents), while the greenback showed a modest improvement.