Diamond News

Gold moved slightly higher overnight, trading in a tight range of $1295.55 - $1299.75. It was aided by a modest decline in the dollar (DX from 93.60 – 93.21), which was pressured by some strength in the yen (110.20 – 109.84, firmer Japanese Leading Index) and the euro ($1.1775 - $1.1839, 3-week high - yesterday’s comments by ECB’s Praet on the bank looking to signal next week a winding down of its bond buying program by year end still resonating).

A further rise in global bond yields (US 10-year from 2.97% - 2.992%, German Bund from 0.469% - 0.517%, UK Gilt from 1.38% - 1.419%) was a headwind for gold, as were firmer global equities. The NIKKEI advanced 0.9%, the SCI shed 0.2%, European markets ranged from -0.1% to +0.3%, and S&P futures were +0.2%.

Some comments from Berkshire’s Buffet ("Right now, there's no question: It's feeling strong. I mean, if we're in the sixth inning, we have our sluggers coming to bat right now,"), and JPMorgan’s Dimon ("The way I look at it, there is nothing that is a real pothole,"), along with news that the US reached a deal with China over ZTE to end crippling sanctions were supportive of stocks.

Strong buying on the NY open took gold past its overnight high and the triple top at $1301-02 to reach $1303. However, the advance was short lived as the 8:30 AM Jobless Claims Report was a little better than expected (223k vs. exp. 225k).

US stocks rallied into and through their open (S&P +8 to 2780), and the US 10-year yield hovered around 2.99%. The DX popped to 93.49, and drove gold lower.

The yellow metal sank through $1300 to reach $1295, where support at yesterday’s low held. However, bargain...

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