The Carnage Continues
It wasanother wild roller coaster ride today with U.S. equities going throughtremendous price swings and closing dramatically lower on the day. Officially,today’s closing price in the Dow puts that index into corrective territory.
TheDow Jones Industrial Average traded to a high with gains of 352 points. It alsotraded to a low, which resulted in a566-point drop only to recover slightly off the lows to close at 24,442.92points, a decline of 245 points on the day.
TheNASDAQ composite had a more significant decline by losing 1.56% in tradingtoday, which is a net loss of 112 points and the index closing at 7055.17.
Truly the recent carnage and dramatic selloff in U.S. equities continues.
Citedas a significant factor contributing totoday’s sharp selloff are realistic concerns about global growth and, moreimportantly, news on the United States and Chinese trade talks.
Today,Bloomberg reported that the U.S. plans more China tariffs if the Trump-Ximeeting fails. According to the Bloomberg Report, “The U.S. is preparing to announce by earlyDecember tariffs on all remaining Chinese imports if talks next month betweenpresidents Donald Trump and Xi Jinping fail to ease the trade war, three peoplefamiliar with the matter said.”
Accordingto this report, new tariffs would be imposed upon China amounting to $257billion worth of Chinese imports into the United States.
At anevent in Indiana this Saturday, President Trump said, “We are in the middle of a pretty nasty dispute.We’re in a trade dispute -- I want to use that word because it’s a nice, softword -- but we’re going to win. You know why? Cause we always win.”
Sellingpressure in U.S. equities has had the neteffect of strengthening the U.S. dollar and putting downside pressure on gold,silver, and palladium prices.
Thedollar index has gained 3/10 of a percent in trading today and is currently fixed at 96.425. Gold futuresbasis the most active December contract is currentlydown $4.60 and fixed at $1,231.20. Themost noteworthy characteristic about the range gold has traded in today hasbeen the intraday low, which came in at $1,226.10.
This low matches within $0.30 of the 100-day moving average. The factthat gold pricing did not breach or close below that average indicates thatprice area is a level of support that at least for now gold has been able tohold.
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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.  |