Gold softened last night, paring some of yesterday’s rebound in a narrow range of $1281 - $1285.30. It rose to its $1285.30 top during Asian and early European time, fading a dip in the US dollar (DX from 97.91 – 97.68). The DX was pressured by gains in the yen (109.74 – 109.45), pound ($1.2660 - $1.2717, relief rally after PM May announces she will resign on 6/7, upbeat UK Retail Sales), and the euro ($1.1176 - $1.1205). Gold softened to its $1281 low later during European hours as the DX rebounded (97.84) and against a bounce in the US 10-year bond yield (2.313% to 2.333%) and mostly firmer global equities. The NIKKEI was off 0.2% and the SCI was flat, but European markets advanced 0.7% -0.8%, and S&P futures were +0.6%. Stocks were lifted by comments last night from Trump that he expected the US-China trade war to end swiftly, and that a trade deal could include the US lifting restrictions on Chinese telecom giant Huawei, along with remarks early this morning from the Chinese Ambassador Tianki that China was ready for further trade talks. After three sessions of heavy losses ($63.76 - $57.33), oil prices bounced (WTI to $58.74) and were also supportive of stocks.
At 8:30 AM, a miss on US Durable Goods (-2.1% vs. exp. -2.0%, with large downward revision to last month’s increase) knocked S&P futures lower (+12 to 2831), and took the US 10-year bond yield down to 2.311%. The DX slipped back to 97.70, and gold bounced to $1284.25.
US stocks rallied on their open (S&P +20 to 2841) with gains in the Financials, Utilities and Real Estate sectors leading the advance. An upbeat forecast on Amazon by Piper Jaffray and a further increase in oil (WTI...