Research

Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should seek the relevant advice.

Daily Resources Overview

 

Goldfutures prices are trading slightly higher and not far below the session highin early-afternoon U.S. trading Tuesday. Some chart-basedbuying and support from a weaker U.S. dollar index early this week were bullishelements that just slightly offset the bearish spectre of a serious bear marketin crude oil that saw Nymex futures prices drop to a 15-month low of $47.49today. February gold futures were last up $1.30 an ounce at $1,253.00. MarchComex silver was down $0.039 at $14.72 an ounce.

European and Asian stock markets were mostly weakerovernight. U.S. stock indexes were posting moderate rebounds at midday today,after dropping to new lows for the year on Monday. The small-cap Russell 2000index is now in bear market territory—down 20% from its high. If the stockmarket continues to sell off and see volatile trading, such would be a bullishelement for safe-haven gold and silver markets.

The U.S. Federal Reserve’s Open Market Committee(FOMC) is meeting today and Wednesday to discuss monetary policy, while theU.S. government could be shut down at the end of the weekif Congress and President Trump cannot agree on a budget plan. Many expect theFOMC to raise interest rates by 0.25% on Wednesday afternoon, at the conclusionof their meeting. However, that is not a strong consensus. The expectations fora rate hike diminished recently after proclamations from President Trump, hiscloses economic advisors and noted market analysts and traders that the Fedshould leave interest rates alone.

A heavy slate of U.S. economic data is also due outthe rest of this week, besides the FOMC conclusion, including the firstestimate of third-quarter gross domestic product.


 
Posted on 19/12/2018 9:00:00 AM

Back to top