The gold market on Tuesday slumped to a four-month low. The keener “risk-on” trader/investor attitudes in the marketplace the past few weeks has seriously dented the safe-haven metal. Some more price pressure is likely in the near term. If the world equity markets continue to push to record or multi-year highs, gold will continue to suffer. However, when the world stock markets see their very mature bull runs come to an end–and they most certainly will at some point–then hard assets like gold and silver will benefit significantly. Stay tuned!–Jim
Daily Morning Report
World Stock Markets Sell Off at Mid-Week
Wednesday, December 6–Jim Wyckoff’s Morning Markets Report
OVERNIGHT DEVELOPMENTS
While world stock markets were mostly lower overnight, U.S. stock indexes are pointed to weaker openings when the New York day session begins. Asian stock indexes led the declines, amid worries about China’s economic growth prospects. A big drop in copper prices this week has also spooked equity market traders.
It’s a bit of a “risk-off” trader/investor mentality in the marketplace at mid-week. Safe-haven gold and U.S. Treasury prices are trading up as the world equity markets are under selling pressure.
The key “outside markets” Wednesday morning see the U.S. dollar index slightly lower. Nymex crude oil futures prices are also weaker early today.
Markets Quieter Early Tuesday
Tuesday, December 5–Jim Wyckoff’s Morning Markets Report
OVERNIGHT DEVELOPMENTS
World stock markets were mostly lower overnight. U.S. stock indexes are pointed to mixed to weaker openings when the New York day session begins.
In overnight news, Australia’s central bank kept its monetary policy unchanged at its regular monetary policy meeting.
The key “outside markets” Tuesday morning see the U.S. dollar index slightly lower in early U.S. trading. Nymex crude oil futures prices are also weaker early today.
Grain Markets Have Likely Put In Major Bottoms
The grain markets are seeing some new buying interest due in part to rallying world stock markets that are at or near record or multi-year highs. Traders reckon that rallying stock markets mean better world economic growth, which means more demand for grains. See on the daily bar chart for March corn futures that prices last Friday closed at a bullish weekly high close and on Monday hit a three-week high. It’s my bias that the grain markets have put in, or are very close to putting in, major market bottoms. Stay tuned!–Jim
World Stock Markets Lifted After U.S. Tax Bill Passes Senate
Monday, December 4–Jim Wyckoff’s Morning Markets Report
OVERNIGHT DEVELOPMENTS
World stock markets were mostly higher overnight. U.S. stock indexes are pointed solidly higher openings when the New York day session begins. Major U.S. stock indexes are at or near record highs.
Risk appetite is keener to start the trading week after the U.S. Senate very early Saturday morning passed a tax-reform bill, which many believe will free up the U.S. economy for stronger growth in the coming months and years. Now, the House of Representatives and Senate must hammer out a final tax bill.
The risk-on trading mentality in the marketplace is bearish for safe-haven assets like gold and U.S. Treasuries.
Markets Anticipating U.S. Senate Vote on Tax Reform Friday
Friday, December 1–Jim Wyckoff’s Morning Markets Report
OVERNIGHT DEVELOPMENTS
World stock markets were mostly weaker overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins, on corrective, profit-taking pullbacks after the S&P 500 and Dow soared to record highs Thursday.
Investors and traders are awaiting the U.S. Senate vote, likely today, on a tax-cut plan. The consensus is now that the bill will pass the Senate and eventually become law. That’s been a bullish element for the U.S. stock market late this week.