Diamond News

Gold firmed last night, retaining its choppy tone and trading in a range of $1403 - $1412.  It climbed to its $1412 high during Asian and early European hours, where resistance there held (old double bottom).  Gold’s advance was fueled by a decline in the US dollar (DX from 97.12 – 96.88), which was pressured from some strength in the yen (108.61 – 108.26) along with a dip in the US 10-year bond yield from the 1-month high reached yesterday (2.143% - 2.115%).  Later during European time however, gold retreated to $1405, fading a rebound in the 10-year yield (2.146%) and in the DX (97.03).  The dollar was lifted by weakness in the euro ($1.1274 - $1.1246, dovish remarks from ECB’s Visco, weak German Wholesale Price Index) and the pound ($1.2554 - $1.2522, BOE’s Vlieghe says no-deal Brexit could mean near zero interest rates).  Firmer global equities were also a headwind for gold with the NIKKEI gaining  0.2%, the SCI was + 0.4% (despite weaker Chinese imports), European shares were up from 0.1% to 0.5% and S&P futures were +0.3%.  Higher oil prices (WTI to $60.74, US Gulf oil producers cut production ahead of storm, Mid-East tensions) were supportive of stocks. 

At 8:30 AM, stronger readings on US PPI (0.1% vs. exp. 0) and Core PPI (0.3% vs. exp. 0.2%) helped weaken S&P futures (3111 – 3006) and the US 10-year bond yield climbed to 2.145%.  The DX rose to 97.09, and gold was pressured down to support at the overnight low $1403.  

US stocks drifted a bit lower after their open (S&P +2 to 3002), with gains in Industrials and Consumer Discretionary sectors offset by losses in Utilities and Health Care.  The 10-year yield slipped down to 2.125%, and the DX retreated back below...

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