Gold Powers Thru $1,500/oz. , Markets Spooked & Dow Opens Down over -400 Pts.

(Kitco News) – Gold prices are sharply higher and hit another six-year high above the key $1,500.00 level in early U.S. trading Wednesday. Silver prices are also solidly higher and have hit a 13-month high of $17.01, basis December Comex futures. At the beginning of U.S. dealings, traders and investors are really on edge as U.S. Treasury yields took a dramatic dive the past 90 minutes. Safe-haven demand continues to be featured in the two precious metals. December gold futures were last up $23.50 an ounce at 1,507.70. September Comex silver prices were last up $0.52 at $16.965 an ounce.The yield on the benchmark U.S. Treasury note dropped to 1.628% this morning, with government bonds in Europe also seeing their yields slide, especially the safe-haven German bond (bund). Television business channel commentators are saying this morning’s big down-moves in bond yields are similar to the bond price action seen during the 2008 financial crisis.Asian stock markets were down overnight and European stock indexes were firmer up until the U.S. opening of markets. U.S. stock indexes are pointed toward sharply lower openings when the New York day session begins. Serious near-term technical damage has been inflicted on the U.S. stock indexes recently, to suggest they have put in at least near-term tops.The U.S.-China trade war continues to be on the front burner of the marketplace. China’s central bank on Wednesday set its currency, the yuan, exchange rate with the U.S. dollar at 6.9996. That’s the lowest fixing set by the central bank in 11 years, but still just below the 7 level that the U.S. has ostensibly deemed problematic. This exchange rate will continue to be closely monitored by the world marketplace, as China is already being accused of using its currency as a trade weapon. The U.S. designated China as a currency manipulator earlier this week.

Stocks Drop At Open

Stocks fell sharply on Wednesday, adding to the month’s steep losses, as a drop in global bond yields raised concerns about a slowing global economy.

The Dow Jones Industrial Average dropped 328 points at the open, or 1.3% and now are Down over 400 points. The S&P 500 lost 0.8% while the Nasdaq Composite traded 1% lower. Wednesday’s losses brought both the Dow and Nasdaq down more than 3%.

Posted by :

Jack Dempsey , President

401 Gold Consultants LLC

jdemp2003@gmail.com

Leave a Reply Cancel reply