Gold firms on stronger yuan, yen, contagion concerns
DAILY MARKET REPORT
Gold firmed overnight beginning in Asia and the positive trend carried over to New York at the open. The precious metal is now priced at $1179.50 and up $4 on the day. Silver is up 6¢ on the day at $14.72. A stronger Chinese yuan and Japanese yen are the chief influences with weak stock markets in Asia and Europe adding to the flow of interest in the direction of precious metals. Commodity prices also firmed overnight led by oil and natural gas up 1.1% and 1.6% respectively as we upload this report to the server. The Turkish lira returned to the downside this morning as measures taken by the government appear to have worn off – a turn of events likely to reinvigorate global concern about an emerging market contagion.
Quote of the Day
“To suppose that the value of a common stock is determined purely by a corporation’s earnings discounted by the relevant interest rates and adjusted for the marginal tax rate is to forget that people have burned witches, gone to war on a whim, risen to the defense of Joseph Stalin and believed Orson Welles when he told them over the radio that the Martians had landed.” – James Grant, Interest Rate Observer
Chart of the Day
Chart note: The direct relationship between growth in the federal debt and the price of gold. The national debt, by the way, now stands at $21.372 trillion with $880 billion added so far in 2018.