Strong U.S. Equities Continues To Pressure Gold
Gold finished under moderate pressure today as U.S. equities moved higher. The NASDAQ composite closed at an all-time new record high today as the tech heavy index continued to react to the favorable jobs report on Friday.
The U.S. dollar had been trading under pressure today, and although it closed lower at 94.02, it closed well off the intraday low today of 93.63. It has been dollar strength over the last couple of months that has put so much underlying pressure on the precious metals complex, specifically gold.
The summit between the United States and North Korea is still solidly in play. Currently, it is scheduled for June 12, at 9 o’clock in Singapore. Also, there is a new wildcard which is putting the eurozone in jeopardy. It is the Italian debt which currently resides at €2.3 trillion dollars.
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Regarding the other geopolitical issues that have been on the forefront of market participants, we have seen very little reaction to reports which emerged over the weekend indicating a lack of progress, and, in essence, a stalemate, in regard to the current trade dispute between the United States and China.
This weekend Larry Kudlow, the top economic advisor for President Trump, admitted that the trade dispute with allies could jeopardize the robust economy that currently exists in the United States.
According to the South China Morning Post, “Larry Kudlow’s remarks came after finance ministers from the Group of Seven industrialized countries on Saturday expressed outrage over U.S.-imposed tariffs on steel and aluminum and called on Washington to reverse course.”
Most alarming was a threat made by China, reported by CBS News, that said, “China is threatening to retaliate against proposed U.S.tariffs after Commerce Secretary Wilbur Ross' trip to Beijing failed to yield an agreement on trade.
The warning from Beijing came after delegations led by Ross and China's top economic official, Vice Premier Liu He, wrapped up talks on Beijing's pledge to narrow its trade surplus. White House advisers were insisting on fundamental changes in ties between the world's two biggest economic powers.”
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Wishing you as always, good trading,
By Gary WagnerContributing tokitco.com
Follow @garyswagner
gary@thegoldforecast.comwww.thegoldforecast.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.