Live Spot Gold
SPOT MARKET IS OPEN
closes in 4 hrs. 50 mins.Feb 25, 2020 12:10 NY Time
| Bid/Ask | 1643.80 / 1644.80 | |
| Low/High | 1632.70 / 1659.30 | |
| Change | -15.60 | -0.94% |
| 30daychg | +72.20 | +4.59% |
| 1yearchg | +316.70 | +23.86% |
| Alerts Charts |
Silver Price & PGMs
Feb 25, 2020 12:10 NY TimeKitco 10AM Silver Fix
| Silver | 18.15 | -0.45 |
| Platinum | 929.00 | -36.00 |
| Palladium | 2631.00 | +94.00 |
| Rhodium | 11200.00 | +100.00 |
Click on the metal names to
see the associated charts
Dow Drops 300 points, Extending Monday’s Rout as Bond Yields Drop
( Kitco, Tues. Feb. 25th, 2020) – Stocks fell on Tuesday after a failed early attempt at recovering some of the lost ground from the previous session, which was the market’s worst in two years.
The Dow Jones Industrial Average traded 300 points lower, or 1%. The S&P 500 also slid 1% along with the Nasdaq Composite. Earlier in the day, the Dow rose as much as 188 points.
“I understand the inclination to buy on the dip. I understand that the path of least resistance in this market is to bounce up … but I stress, this is different,” Mohamed El-Erian, chief economic advisor at Allianz and former Pimco CEO, told CNBC’s “Squawk Box.”
Traders kept an eye on the bond market, which pointed to slower economic growth around the world. The 10-year Treasury yield traded at 1.324%, hitting an all-time low.
“With global investors chasing after U.S. assets, specifically fixed income, there’s significant pressure on rates to stay low,” said Andrew Thrasher, founder of Thrasher Analytics. “This doesn’t mean we won’t see some counter-trend moves in the 10yr, but the trend is well defined to the downside right now which is not one I’m overly eager to fight.”
The drop in yields pushed bank stocks lower. Bank of America fell more than 2% while JPMorgan Chase traded 1.5% lower. Citigroup and Wells Fargo both declined by about 1%.
The drop in yields pushed bank stocks lower. Bank of America fell more than 2% while JPMorgan Chase traded 1.5% lower. Citigroup and Wells Fargo both declined by about 1%.
The moves on Tuesday came after investors fled stocks on Monday as a surge in coronavirus cases outside of China intensified fears of a prolonged global economic slowdown.
The Dow sank more than 1,000 points on Monday, suffering its biggest point and percentage drop since February 2018. The S&P 500 plunged 3.3%, also the worst drop in two years. With Monday’s declines, the S&P 500 and the Dow both wiped out all of their 2020 gains.
Gold Price Holding Key Support At $1,650/oz.
Gold price are down but seeing little reaction to slightly weaker-than-expected U.S. consumer confidence; gold prices continue to hold critical support around $1,650 an ounce.
American consumer confidence index dropped to a reading of 130.7 in February, relatively unchanged from January’s reading of 130.40, the U.S. Conference Board reported Tuesday. However, Economists were expecting to see the index rise, with the market consensus projecting a reading of 132.60.
The gold market has seen consistent technical selling through the morning session following Monday’s massive rally that pushed prices to a fresh seven-year high. Despite the selling pressure gold is seeing little reaction to the economic data. April gold futures last traded at $1,652.10 an ounce, down 1.46% on the day.
The weaker-than-expected headline numbers was the result of a drop in consumers’ confidence in the short-term. The present situation index dropped to 165.1, down from the previous reading of 173.9. Meanwhile the expectations index rose to 107.8, up from January’s reading of 101.4.
Although consumer confidence was relatively unchanged in February, economists expect that consumer spending will continue to support U.S. economic growth.
“Despite the decline in the Present Situation Index, consumers continue to view current conditions quite favorably. Consumers’ short-term expectations improved, and when coupled with solid employment growth, should be enough to continue to support spending and economic growth in the near term,” said Lynn Franco, senior director of Economic Indicators at the Conference Board.
Avery Shenfeld, senior economist at CIBC said that markets could look past the latest sentiment data as the survey was conducted before markets were significantly hit with growing fear sentiment. However, he added that the latest news about the coronavirus should still have limited impact on U.S. confidence.
“For everything other than travel plans, we don’t expect to see any impact on US consumers unless and until we see the contagion cropping up in larger numbers on American shores,” he said.
Posted by :
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com