Live Spot Gold
SPOT MARKET IS OPEN
closes in 5 hrs. 25 mins.May 05, 2020 11:35 NY Time
| Bid/Ask | 1699.80 / 1700.80 | |
| Low/High | 1690.00 / 1709.40 | |
| Change | -2.70 | -0.16% |
| 30daychg | +78.00 | +4.81% |
| 1yearchg | +421.30 | +32.95% |
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Silver Price & PGMs
May 05, 2020 11:35 NY TimeKitco 10AM Silver Fix
| Silver | 14.87 | +0.12 |
| Platinum | 764.00 | -2.00 |
| Palladium | 1693.00 | -83.00 |
| Rhodium | 3700.00 | 0.00 |
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(WSJ, Tues. May 5th, 2020) – Stocks rose slightly following comments from Warren Buffett over the weekend where the world’s most famous investor talked candidly about his concerns for the market.
The Dow Jones Industrial Average added 26.07, or 0.1%, to 23749.76. The S&P 500 gained 12.03 points, or 0.4%, to 2842.74. The Nasdaq Composite rose 105.77 points, or 1.2%, to 8710.71. The Dow industrials had been down as many as 363 points in the morning.
Stocks had traded lower for much of the session, but pared their losses late in the day following a rally in the oil market. U.S. crude-oil futures for delivery in June rose 3.1% to $20.39 a barrel, while shares of ExxonMobil and other energy companies gained.
The nuanced comments from Mr. Buffett, the chief executive of Berkshire Hathaway Inc., reflect the state of the markets and world. Stocks have come off their March lows, but value judgements are difficult given the economy. The stock market appeared to be pricing in a quick recovery from the coronavirs pandemic, but bonds haven’t reflected that, and equities themselves have stalled the past two weeks.
Meanwhile, the economy is still under pressure.
On Monday, retailer J. Crew Group Inc. filed for bankruptcy protection, crushed by the damage from coronavirus. It was the first big retailer to do so, but others are likely to follow.
Mr. Buffett reported that he sold his entire stake in four airlines, and talked about problems in that sector, energy, and small businesses, too. While he sounded optimistic notes and waxed about “American magic,” he also conceded that he didn’t see any attractive investments right now.
“For him to come out and say ‘I don’t see any opportunities’ is a big thing,” said Greg Harmon, founder and president of Dragonfly Capital. “It’s clear to him that it’s not time for everything to start going up.”
The airlines Mr. Buffett sold were all down on Monday. Delta Air Lines declined 6.4% to $22.57, United Airlines Holdings slid 5.1% to $25.26 and American Airlines Group fell 7.7% to 9.82. Southwest Airlines also slipped 5.7% to 27.56.
“What [Mr. Buffett] said is entirely reasonable,” said Robert Colby, chairman of Robert W. Colby Asset Management. “He’s keeping his cash hoard, and so am I.” Mr. Colby, who earlier advised his clients to get out of stocks, said he sees no good reason to buy equities right now.
Meanwhile, investors were also nervous after a seeming renewal of antagonism between the U.S. and China.
The Trump administration stepped up assertions that the new coronavirus originated at a laboratory in the Chinese city of Wuhan, with Secretary of State Mike Pompeo saying Sunday that he has seen “enormous evidence” for this. The White House will release a “conclusive’’ report on the topic, according to President Trump.
More than the accusations themselves, investors are taking the increase in tensions seriously, said Sebastien Galy, a macro strategist at Nordea Asset Management.
“The last escalation was pretty detrimental for equity markets,’’ he said, referring to the selloff in mid-2019 at the height of the U.S.-China trade war. “A de-escalation process can take weeks.”
Gold Price Holding $1,700
(Kitco News) – Gold prices are holding above support at $1,700 but is struggling to find momentum after sentiment in the U.S. service sector fell less than expected, according to the data from the Institute for Supply Management (ISM).
Tuesday, the ISM said its nonmanufacturing index showed a reading of 41.8% in April, down from March’s reading of 52.5%. However, the data was better than expected as consensus forecasts were calling for a reading of 37.5%.
Readings above 50% in such diffusion indexes are seen as a sign of economic growth, and vice-versa. The farther an indicator is above or below 50%, the greater or smaller the rate of change.
Although the headline number was better than expected, sentiment in the service sector fell to its lowest level since April 2009. The service sector has been significantly hurt as the COVID-19 pandemic forced the closure of all non-essential services.
“Respondents are concerned about the continuing coronavirus impacts on the supply chain, operational capacity, human resources and finances, as well as the uncertain timelines for the resumption of business and a return to normality,” said Anthony Nieves, chair of the ISM Non-Manufacturing Business Survey Committee.
The gold market is seeing little reaction to the latest sentiment data. June gold futures last traded at $1,705.30 an ounce, down 0.47% on the day.
Posted by :
Jack Dempsey, President
401 Gold Consultants LLC