Here’s why the ‘unloved but welcome’ U.S. stock market rally from March lows won’t last, Goldman says

“Brief hopes that U.S.-China trade tensions may subside appear to have been dashed.

Investors had breathed a sigh of relief on Friday when President Donald Trump chose not to mention sanctions or tariffs at a press conference about China’s new security law in Hong Kong.

However, Beijing is set to pause purchases of certain U.S. products, including soybeans, according to reports, sending stock futures slightly lower before the open. Traders had initially shrugged off a weekend of protests against police killings of black people.

Optimism over the economic recovery from coronavirus, with all 50 states taking steps to reopen, has sent stocks higher in recent weeks.”

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KITCO/Jim Wyckoff

Gold prices weaker as traders assessing new crisis in U.S.

24 hour spot gold“Gold prices are modestly lower in early U.S. trading Monday. The safe-haven metal sees some pressure from U.S. stock indexes that are surprisingly not showing much reaction to major civil unrest that has exploded across major U.S. cities. Silver prices are posting solid gains and hit a more-than-three-month high overnight. August gold futures were last down $5.10 an ounce at $1,746.60. July Comex silver prices were last up $0.186 at $18.685 an ounce.

Global stock markets were mixed in overnight trading. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. Civil unrest over racial inequality that erupted in U.S. cities during the weekend has dealt another major blow to the world’s largest economy. Reports said President Trump Friday night had to take cover in a bunker at the White House due to unruly crowds gathered at the White House. With the U.S. dealing with its own civil problems, it seems even less likely mainland China will loosen its tightening grip on Hong Kong.”

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MARKETWATCH/Mark DeCambre and William Watts

Gold edges lower as investors play down U.S.-China tensions

gold bars in a pile“Gold futures traded slightly lower Monday, losing ground as equities drifted into positive territory and investors appeared to play down U.S.-China tensions and a weekend of civil unrest in several U.S. cities.

Gold for August delivery GCQ20, -0.14% on Comex fell $6.50, or 0.4%, to $1,745.10 an ounce, while July silver SIN20, 1.11% was up 14.10 cents, or 0.8%, at $18.64 an ounce.

”Investors are continuing to largely ignore the escalating U.S.-China tensions, the global recession and ongoing riots in the U.S., among other risks. Sentiment remains supported due to the easing of lockdown measures and because of ongoing central bank support,” said Fawad Razaqzada, market analyst at ThinkMarkets, in a note.”

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