Gold prices broke to under the pivotal $1,700 mark overnight, and did so despite a slightly weaker US dollar, despite a firmer euro, but alongside almost 1% weaker crude oil values. The decline was partially attributed to an overall slide in commodities.
Metals markets opened mixed this morning as the final session of quite an active week got underway. Spot gold was down less than $2, with a bid at $1,731 and silver was off 13 cents at $32.18 per ounce.
Metals markets opened marginally higher on this US Election Day as the US dollar traded virtually flat and as crude oil advanced by about thirty cents per barrel. Speculative participants appeared to be willing to take only small bites at the market.
The US dollar broke substantially above the pivotal 80.00 mark on the trade-weighted index this morning, prompting fairly sizeable selling in the precious metals’ complex. Spot gold fell to an overnight low of $1,705 while spot silver showed bids near $31.80 per ounce.
What would the market for precious metals look like if we were approaching the top of this decade-long bull market? You would almost certainly see a price spike of some significance, say a doubling of prices in 12 months.
The fourth quarter began with modest losses in precious metals as well as the US dollar and the euro this morning. Spot gold started the new month with a $3 loss and it was quoted at $1,768 per ounce in New York. Silver fell 20 cents to open near $34.31 the ounce.
The metals complex opened higher this morning as the pre-long weekend book-squaring ritual got underway and as players awaited Mr. Bernanke’s words from Jackson Hole. Gold advanced $5 to $1,660 while silver rose 20 cents to $30.70 per ounce.
Good news: Vice Presidential candidate Paul Ryan may put the focus of the presidential campaign on the sustainability of the US budget. Bad news: Ryan’s plan delivers some tough medicine; if the European experience is any guide, “austerity” makes bad politics.
For the second time in four years, the Republican Party has blown a presidential election through the choice of a running mate. What little chance the GOP had in winning the election has gone up in smoke with the selection of Wisconsin congressman Paul Ryan.