Daily Morning Report

Monday, August 14–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mostly higher Monday, on some easing of fears the U.S. and North Korea are headed toward military conflict soon. The U.S. secretary of defense and secretary of state, as well as other Trump administration officials, on Sunday said they are trying to achieve denuclearization of North Korea through diplomacy. Also, China on Monday said it has banned key North Korean imports.

Gold prices are weaker on some profit-taking from shorter-term futures traders and on a corrective pullback from recent gains. A slightly less risk-averse marketplace on Monday is also a negative for safe-haven gold.

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Friday, August 11–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly lower again overnight, amid the heightened trader and investor anxiety in the marketplace. The U.S.-North Korea tensions have not receded and escalated a bit Thursday as U.S. President Trump again warned North Korea that any military action by that regime against a U.S. friend would prompt a massive response from the U.S. He also said Thursday his previous “fire and fury” statement maybe was not tough enough. Some are calling this matter then next Cuban missile crisis. U.S. stock indexes are also pointed toward weaker openings when the New York day session begins.

Gold prices are modestly higher and hit a two-month high overnight, on continued safe-haven demand that has occurred this week. Noted investor Ray Dalio is reportedly advising investors to have 5% to 10% of their investment portfolio in gold.

U.S. Treasuries are also seeing increased safe-haven demand this week.

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The gold market scored a nearly two-month high Thursday amid heightened geopolitical tensions, amid the U.S.-North Korea stare-down. Gold bulls will continue to benefit from this matter, which is not likely to go away any time soon, and will likely get worse before it gets better. Stay tuned!–

Thursday, August 10–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly lower again overnight, amid keener risk aversion. U.S. stock indexes are also pointed toward weaker openings when the New York day session begins.

Gold prices are higher in pre-U.S. day session trading and hit a nearly two-month high on safe-haven demand.

North Korea kept up its war talk Thursday by again threatening to unleash an “enveloping fire” in the coming weeks, with a specific target being Guam. On Tuesday U.S. President Trump said the world’s strongest military could unleash “fire and fury” on North Korea if that rogue nation keeps threatening the U.S. with nuclear missiles. The U.S. secretary of defense and secretary of state on Wednesday backed up Trump’s statement. Japan on Thursday said it would shoot down any North Korean missiles launched at Guam.

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Wednesday, August 9–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

There is keener anxiety and risk aversion in the marketplace Wednesday after U.S. President Donald Trump warned North Korea there would be “fire and fury like the world has never seen” if North Korea keeps threatening the U.S. North Korea, meantime, responded by saying it may fire a missile toward the U.S. territory of Guam. North Korea had recently threatened to use its nuclear weapons against the U.S. after the United Nations slapped more sanctions on the rogue nation. Some U.S. lawmakers have criticized Trump for his remarks Tuesday on North Korea, saying he should tone down his rhetoric.

World stock markets sold off Wednesday on the heightened U.S.-North Korea tensions. U.S. stock indexes are pointed toward lower openings when the New York day session begins.

Gold prices are solidly higher on safe-haven demand. U.S. Treasuries are also seeing safe-haven buying after Trump’s North Korea remarks to reporters in New Jersey on Tuesday.

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The U.S. dollar index is a basket of six major world currencies stacked up against the greenback. See on the daily bar chart for the September dollar index futures that prices are in a downtrend. In fact, the index has been trending lower for all of 2017. There are no solid, early chart clues that the dollar index is close to bottoming out. If the dollar index continues its trek lower, such will continue to support bullish ideas in the raw commodity sector. Most world raw commodity markets are priced in U.S. dollars. When the dollar weakens, it makes those raw commodities cheaper to purchase in non-U.S. currency. Stay tuned!–Jim