Gold prices up as global stock markets pull back
“Gold prices are moderately higher in early U.S. trading Tuesday, as world stock indexes were mostly weaker overnight. Gold bulls are working to kill a fledgling price downtrend that has developed on the daily bar chart, but have some more work to do in the near term to stop it. August gold futures were last up $12.20 an ounce at $1,717.20. July Comex silver prices were last up $0.002 at $17.90 an ounce.
Global stock markets were mixed but mostly weaker in overnight trading. U.S. stock indexes are pointed toward lower openings when the New York day session begins, on normal corrective pullbacks from recent strong gains. The Nasdaq index Monday hit a record high, while the S&P 500 stock index hit a three-month high. Trader and investor risk sentiment remains upbeat. The just-released NFIB small business optimism index rose to 94.4 in May from 90.9 in April. The U.S. government reported the American economy officially entered recession in February, while also on Monday the Federal Reserve expanded its lending program to U.S. businesses.”
Gold Gaining Ahead of Tomorrow’s Fed Release
“Gold is gaining 0.5% this morning, as it retraces more of its Friday’s sell-off. Financial markets remain in risk-on mode, as stocks continue to hover along their medium-term highs. What about the other precious metals? Silver gained 2.37% on Monday and today it is 0.9% lower. Platinum gained 3.71% and today it is 1.3% lower. Palladium gained 4.32% yesterday and today it is 2.8% lower. So precious metals’ prices are mixed today.
The recent economic data releases have been confirming negative coronavirus impact on global economies. However, Friday’s U.S. monthly jobs data came out much better than expected. And the Nonfarm Payrolls number has been positive. Will we get more positive surprises this week? Today we will get the U.S. Wholesale Inventories data. But the markets will await tomorrow’s very important data releases: Consumer Price Index and the FOMC Statement.”
MARKETWATCH/Myra P. Saefong and Mark DeCambre
Gold prices push more than 1% higher amid global equity pullback
“Gold prices headed sharply higher Tuesday as global equities staged a modest retreat after being buoyant for weeks on the back of the reopening of economies stricken by the coronavirus pandemic.
Prices for the precious metals are finding some traction “in the wake of a risk off global trade in equities, official recession labeling for the U.S. economy and because of the markets capacity to reject sub-$1,700 pricing for a second day in a row,” analysts at Zaner Metals wrote in a daily note.
Against that backdrop, August gold GCQ20, +1.21% on Comex was up $23.20, or 1.4%, at $1,728.30 an ounce, after finishing Monday’s session up 1.3%. Meanwhile, July silver SIN20, -0.04% added nearly a penny, or 0.04%, to trade at $17.90 an ounce, following a 2.4% climb in the previous session.”
Cramer on rampant market speculation: ‘I’ve never seen so many games played with stocks’
“CNBC’s Jim Cramer cautioned investors on Tuesday to avoid the risky stocks favored by day traders these days amid rampant speculation in the market.
“I’ve never seen so many games played with stocks, which is that, ‘hey, we’re taking this one up today. We’re taking that one up today,’” Cramer said on “Squawk on the Street.”
The market’s amazing comeback from its March coronavirus low has led to excessive risk taking by many traders.
Along with retail investors trying to catch up to the rally, commission-free trading, the lack of sports and even stimulus checks from the Treasury Department being used to buy stocks have played a factor. Traders have even bid up the stocks of companies that have filed bankruptcy or are expected to do so soon. Cramer warned on Tuesday that many of those traders were likely to lose money in these trades.”