Monthly Summary
May 2018

Precious metals’ performance was mixed in May with gold finishing at $1,300.50, down 1.30%, and silver up 0.60% at $16.47.  Platinum and palladium finished up 0.75% and 2.40% respectively.  The US dollar continued to dominate financial markets this month, extending its already impressive run which began during the second half of April.  The US dollar rose 2.30% in May, and reached its highest level since mid-November.

Treasury yields, which had a wonderful April with 10-year notes breaking 3.0%, continued to climb and reached 3.1% by mid-May, a level not seen since 2011.  Two-year notes reached their highest level since 2008, topping off just under 2.6%.  The rise in treasury yields showed a confident US economy where rising interest rates seemed likely in the near future.  This coupled with already falling gold prices because of a thriving US dollar helped suppress any upward momentum gold may have received.

Gold received some respite from rising oil prices which spiked in May due to political instability in Venezuela and Iran combined with already decreasing inventories caused by major oil producing countries agreeing to curb production through 2018.  Oil hit its highest level since 2014 with WTI and Brent crude reaching $73 and $80 a barrel respectively.  Ultimately, gold was caught between a strengthening US dollar and rising treasury yields and inflationary scares caused by rising oil prices. As oil stabilized in late May and prices began to fall, gold dropped too, finishing the month around $1,300.00. 

 

Historical Trends & Pricing

Commentaries

June 18, 2018

Gold is slowly gaining back some of its losses after Friday’s sell-off which dropped the price over 2% to its lowest level of the year.  Currently trading at $1,280.30, gold is up $5.00 after the dollar’s sudden surge last week seems to have plateaued, at least for now.

June 15, 2018

Gold is down $22.00, currently trading at $1,282.70—its lowest level since December 2017.  The drop comes as the US Dollar soared to a 7- month high this morning,  after recent positive economic data and Wednesday’s interest rate increase.  Gold may receive some support from recent tariffs the US and China launched against each other in an escalation of already existing trade tensions.

June 13, 2018

Gold remains stable around $1,296.00 this morning,  as traders await the release of today’s FOMC minutes where interest rates are expected to rise amid continuous positive economic data over the past few months.  Silver reached $17.00 this morning for the first time since April, dropping the silver-gold ratio to 2018 low of 76.24.

June 11, 2018

Gold remains virtually unchanged, down $0.10 at $1,298.60, ahead of tonight’s summit between President Trump and Kim Jong-un.  Equity markets also remain stagnant ahead of the historic meeting with major indices showing trivial movement.  This weekend’s G7 Summit had little to no impact on metal prices after President Trump used the platform to take digs at fellow NATO members and declined signing the joint communique.

June 8, 2018

Gold remains unchanged at $1,299 this morning as investors turn their attention to this weekend’s G7 Summit and next week’s meeting between President Trump and Kim Jong-un. Equity markets are trending downward ahead of these events but metals are remaining stable. 

June 06, 2018

Gold remains relatively stagnant in the $1,298.00 range after rebounding from yesterday’s low of around $1,291.00—its lowest level in two weeks.  A slipping US dollar is the main factor helping boost gold but next week’s FOMC meeting and likely interest rate hike,  should keep pressure on the price leading up to next Wednesday. 

May 30, 2018

Gold received a slight boost this morning trading at $1,301.80, up $2.20, after the US dollar declined due to a rebounding Euro that dropped yesterday to its lowest level of 2018,  amid political upheaval in Italy. Revised Q1 GPD data showed economic growth at a rate of 2.2%, down 0.1%. Despite the downward revision, the data had little impact on markets with the dollar remaining virtually unchanged after its release, and equity futures remaining poised for a rebound after yesterday’s slump.

May 29, 2018

Gold dipped below $1,300, currently down $8.00 trading at $1,296.40 as the US dollar rose significantly to its new high of 2018. Oil prices are also falling quickly with Brent crude down approximately 5% since last week at $75.30, further putting pressure on gold with easing inflation scares.

May 25, 2018

Gold is hovering around $1,305.00,  after gaining over 1% yesterday amid dovish Fed minutes released Wednesday and resurfacing political tension between the US and North Korea.  The Fed intends to let inflation rise above its 2% goal temporarily—suggesting less interest rate hikes this year, and President Trump pulled out of the highly anticipated June 12 meeting with North Korea.  Both events caused the dollar to slide yesterday giving gold a boost it hadn’t seen in weeks.

May 23, 2018

Gold is down $3.70 this morning,  trading at $1,289 as the US dollar is up 0.50% to its highest level since mid-November.  Stocks look poised for losses today with futures down across major indices as President Trump stated he’s not pleased with how trade talks are going with China only two days after putting US-China trade relations on hold.

May 21, 2018

Gold is down $6.20, trading at $1,285.80 after President Trump announced that US and China have agreed on temporary terms regarding trade negotiations, essentially putting any fear of a looming trade war on hold.  US stocks welcomed the news with Dow futures up 220 points prior to opening.

May 18, 2018

Gold continues to drop, and is currently down $2.30, trading at $1,287.60 as the US dollar continues to climb.  The dollar is currently up 3.8% over the past month. Gold seems to have stabilized in the $1,285-$1,290 range as price fluctuations have been much less volatile since Tuesday’s sudden decline. 

May 16, 2018

Gold remains flat around $1,290.50 this morning after plummeting nearly 2% yesterday to its lowest level of 2018. The drop is gold’s largest single day drop since December 2016 and comes as the US dollar had its best single day performance in seven weeks and reached its highest point of 2018. Gold’s rapid decline was further accelerated by rising bond yields with 10-year yields reaching their highest level since 2011.

May 14, 2018

Gold is trading at $1,320.40 (unchanged) this morning as oil prices continue to rise even as OPEC says supply is healthy and it could offset any loss caused by increasing sanctions against Iran. Gold has been stuck between rising oil prices and a lessening in inflation worries, leaving it relatively stagnant around the $1,320.00 mark.

May 11, 2018

Gold is currently trading at $1,323.20, up $1.30 as the US dollar dipped today after reaching its highest level of 2018 earlier in the week. Gold is up about 1.0% this week as the dollar seems to have plateaued—at least for now—after having one of its best months in years and Brent crude is up 3.5% this week at $77.50 a barrel.

May 9, 2018

Gold remains relatively flat this morning, trading at $1,314.40, after PPI data helped curve inflation fears with consumer prices rising 2.6% since last April, missing the estimated yearly rise of 2.8%. Oil prices soared to their highest levels since 2014 after Trump announced the US’ departure from the Iran nuclear deal. The rise in oil should keep inflation a top priority to investors and may help boost gold, even amid an underwhelming PPI report.

May 07, 2018

Gold continues to lag, currently down $0.90 at $1,312.90, as last week’s Fed minutes and employment data help continue the dollar’s rally into this week.  The Fed kept open the idea of more aggressive rate hikes and hinted that the economy seems healthy enough to take a more hard-line approach in the coming months.  Employment data reaffirmed their confidence with unemployment falling to an 18 year low in April.

May 04, 2018

Gold is trading at $1,310.00 down $1.80 this morning after April’s jobs report showed mixed results.  Only 164,000 jobs were created, falling short of the forecasted 190,000, and wages rose 0.1%, short of the 0.2% expected. Unemployment however, dropped to 3.9%, exceeding expectations and falling to its lowest level since 2000.  The dollar gained some traction as less-than-expected wage growth helped reduce some concerns about inflation.

May 02, 2018

Gold is up $3.20, trading at $1,309.10 this morning after dropping yesterday to its lowest level of 2018. Gold’s decline comes as the US dollar continues to climb, reaching its highest point in over four months yesterday, and finally posting positive returns for the year.  Stocks are relatively dormant this morning ahead of today’s FOMC minutes where interest rates are poised to remain unchanged but should give deeper insight into the Fed’s stance for the rest of the year.

April 27, 2018

Gold is up $3.70, trading at $1,320.40 this morning, after dropping 1.7% this week to its lowest level in over a month.  The US dollar continues to perform well, reaching its highest level since mid-January this morning.

April 25, 2018

Gold is down $10.80, trading at $1,319.70, as 10-year US treasury yields are maintaining slightly above the 3% mark.  Increasing yields continue to give the US dollar a boost, which is currently at its highest level since January. Stocks are feeling the pressure of rising yields as well, with major equity indices down across the board.

April 23, 2018

Gold is down today $13.70, currently trading at $1,322.10.  The drop comes as the US dollar is up 0.60% to its highest level in over two months, and US bond yields are also up significantly—with 10-year yields edging close to 3%, a level not seen since 2014.  Stocks remain relatively dormant today as most investors are eyeing increasing treasury yields and how they’ll likely influence equities in the coming weeks.

April 18, 2018

Gold and silver are trading at $1,353.20 and $17.14, an increase of 0.5% and 2.0% respectively.  Silver’s sharp jump puts the current silver to gold ratio at 78.95, its lowest level since February. Stock futures are also up this morning as Morgan Stanley becomes the latest financial powerhouse to post record profits thanks, in part, to the Trump administration’s tax cuts.

April 16, 2018

Gold is up $1.60, trading at $1,346.60 this morning, remaining relatively unchanged after the US and its allies launched targeted missile strikes against Syria this weekend. Stock futures are up today as most investors see these strikes against Syria as symbolic and don’t feel they will escalate into a serious confrontation between the US and Russia.

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