Diamond & Jewelry News

Gold traded either side of unchanged overnight in a range of $1341 - $1349.40.

It moved up to its high early during Asian hours, as the dollar slumped. The DX took out support at 89.35 and 89.25 to make a 3-week low at 89.23, hurt by a strengthening yen (107.15 – 106.85), pound ($1.4335 - $1.4377 – post Brexit high), and euro ($1.2375 - $1.2413).

Later, during European time, the DX rebounded to 89.54, helped by a pullback in sterling ($1.4306 – miss on UK average weekly earnings) and the euro ($1.2360 – miss on German and EU ZEW Survey).

That pressed gold to $1341, where it found support at yesterday’s low. Mostly stronger global stock markets were a headwind for gold with the NIKKEI up 0.1%, the SCI off 1.4%, European shares were up from 0.2% - 0.8%, and S&P futures were +0.5%.

A decline in oil (WTI from $66.70 - $66.06) was a headwind for equities. 

At 8:30 AM, a higher than expected reading on US Housing Starts (1.319M vs. exp. 1.268M) and Building Permits (1.354M vs. exp. 1.330M) lifted S&P futures (2698) which were already strengthening from stronger earnings reports from Netflix, Goldman, and United Health.

Some reassuring comments from Budget Director Mulvaney (economic growth is higher than we expected) and Treasury’s Mnuchin (rising economic growth will help pay for temporary shortfall in tax receipts) were also supportive of stocks.

The DX climbed further to 89.61, and gold retreated in response.

The yellow metal fell through its low from overnight and yesterday at $1341, and tripped some stops to reach $1338.50.

At 9:15 AM, another stronger report on US Industrial Production (0.5% vs. exp. 0.4%) and Capacity Utilization (78% vs. exp. 77.9%) helped boost US equities...

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