DAILY REPORT : Thursday 28 Sep 2017

MACRO: President Trump has announced sweeping tax reforms in a speech at the Indiana State Fairgrounds on Wednesday, outlining an ambitious plan of tax cuts to both individuals and business. "This is a revolutionary change, and the biggest winners will be the everyday American workers as jobs start pouring into our country, as companies start competing for American labor and as wages start going up at levels that you haven't seen for many years," Mr Trump said. The plan will reduce the number of individual tax brackets from seven down to three, with rates set at 12 percent, 25 percent and 35 percent, and frame work in place to allow congress a fourth bracket above 35 percent if deemed necessary. The plan also simplifies and cuts taxes for the middle class, doubling the standard deduction to $12,000 for individuals and $24,000 for married couples filing jointly. In an attempt to make American companies more competitive, the proposal seeks to reduce the corporate tax rate from 35 percent to just 20 percent. President Trump commented that, "This will be the lowest top marginal income tax rate for small and midsize businesses in this country in more than 80 years. Durable goods orders in the U.S. rebounded during August to outpace expectations, increasing +1.7% (exp: +1.0%) to follow a -6.8% decline during July. The headline figure benefitted from the volatile civilian aircraft category, while durable goods ex-transportation added +0.2% (exp: +0.2%) from +0.8% previously. The closely watched non-defence capital goods ex-air added +0.9% (exp: +0.3%) to follow a +1.1% gain during July, while capital goods shipments non-defence ex-air gained +0.7% (exp: +0.1%). Pending home sales in the U.S. declined -2.6% during August to the lowest level in almost 18-months as a lack of inventory weighs upon the market. U.S. equity markets endured volatile trade on Wednesday, however ultimately ended the session higher as President Trump unveiled sweeping tax reforms. The S&P 500 ended trade with a +0.41% gain at 2,507.04 points, touching an intra-day all time record of 2,511.75 points as financials (+1.30%) supported the bourse higher. The DJIA tacked on +0.25% to 22,340.71 points, recovering mid-session following a sharp early session decline to snap a four session losing streak, while the Nasdaq Composite surged +1.15% higher to 6,453.263 points. The greenback continued to strengthen on Wednesday as the DXY index touched the highest level in over a month. Further declines to the euro saw it test 1.1700 against the dollar, while the yen gave up further ground to break above 113.00 for the first time since mid-July. Treasury yields surged higher on Wednesday on the back of optimism surrounding tax reform. The ten-year gained over 7bps to 2.308% and the two-year added around 3.7bps to 1.473%. Markets in Europe booked gains on Wednesday, with financial stocks doing the heavy lifting following Fed Chair Yellen's recent hawkish comments. The Stoxx Europe 600 jumped to its highest close since mid-July to end +0.4% higher, while the German Dax also tacked on +0.4% as exporters found support from a softer euro. In the U.K. the FTSE 100 snapped a two session losing streak to end +0.4% higher as miners pushed higher and the pound softened.

PRECIOUS: Tuesday's dollar strength continued during Asian trade today, as gold struggled to find bids following a break of the USD $1,290 support during U.S. hours. Chinese physical demand remained evident throughout the pre-lunch session, however interest acted only to restrict further declines rather than initiate any assemblance of a recovery. Like clockwork, China's exit saw gold push to fresh session lows and threaten a break of USD $1,280, with regional names on the offer during the Chinese lunch break to extend declines below Tuesday's New York low print. Further gains to USD/JPY above 113.00 weighed further upon the metal and although China returned after lunch with a mild bid bias, interest was once again underwhelming and failed to support the market, with bullion triggering stops to a fresh intra-session low of USD $1,277.90. President Trump's tax reforms are underpinning further dollar strength, with the DXY pushing through a number of technical top-side targets that would indicate we will see further gains over the short-term. Late Asian interest has seen bullion recover to within the broad USD $1,280 - USD $1,284 support level, however further gains to the greenback are likely to see the metal test the 100 DMA at USD $1,272 and this could open up the 200 DMA at USD $1,248. Geopolitical concerns are still abundant and ETF's continue to accumulate metal, therefore interest toward USD $1,271 should act as a short term buying level. The concern is bullion will be unable to extend beyond this key support and become susceptible to further declines as China takes holidays next week, in essence removing the underlying physical demand that has been supporting prices in Asia recently. With regards to the white metals, it is worth making note that palladium surpassed platinum in New York overnight, the first time in 16 years after rising close to +35% in 2017 thus far. Data today includes German CPI, U.S. PCE, U.S. initial jobless claims, U.S. wholesale inventories and U.S. Bloomberg consumer confidence.

 

Although the information in this report has been obtained from and is based upon sources 1StopGold believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute 1StopGold' judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of an investment. This report does not consider or take into account the investment objectives or financial situation of a particular party.

DAILY REPORT : Friday 22 Sep 2017

MACRO: A storm affected initial jobless claims print in the U.S. declined 23,000 to 259,000 (exp: 302,000) during the week ended September 16. Claims in Texas had surged in the wake of Hurricane Harvey with some workers left temporarily unemployed, however unadjusted claims for Texas decreased 23,549 last week and unadjusted claims for Florida increased 5,133 following Hurricane Irma. Last weeks' print saw the four-week moving average increase 6,000 to 268,750, while continuing claims jumped 44,000 to 1.980 million (exp: 1.975 million) during the week ended September 9. The Philadelphia Fed business outlook surged higher during September, with the headline print jumping to 23.8 (exp: 17.1) from 18.9 previously. The shipments index surged to 37.8 from 29.4 to mark the second highest level since 2004, while the new orders index popped to 29.4 from 20.4. House prices in the U.S. inched +0.2% MoM higher during July (exp: +0.4%) according to the latest Federal Housing Finance Agency data, following a +0.1% gain during June. U.S. equity markets retreated from record highs on Thursday, seeing broad based declines as the DJIA snapped a nine session winning streak. Declines to nine of eleven components of the S&P 500 saw the bourse end the session -0.30% lower at 2,500.60 points, while the DJIA pulled back -0.24% to 22,359.23 points and the Nasdaq Composite dropped -0.52% to 6,422.693 points. U.S. treasury yields ended little changed on Thursday, leaving the 2-year yield hovering around an almost nine-year high at 1.442%, while the ten-year held around 2.278%. European markets ended trade mixed on Thursday, as bank stocks turned bid following the FOMC announcement and associated commentary. The Stoxx Europe 600 closed +0.24% higher at 382.88 points to mark the highest close since late July, while the German Dax tacked on +0.25%, with gains tempered by a marginally stronger euro. In the U.K. the FTSE 100 endured whippy trade to end just -0.11% down as gains to banks to were offset by weakness across commodity related stocks due to a stronger greenback.

PRECIOUS: News out of South Korea reporting that North Korea may consider testing a hydrogen bomb in the Pacific saw investors push back into safe haven assets during early Asian trade today. There were no concrete details regarding a test, rather North Korean foreign minister Ri Yong Ho was cited as saying that such a test "could be the most powerful detonation of an H-bomb in the Pacific," The headlines saw USD/JPY sink to a 112.02 low after trading toward 112.55 pre-news, while gold jumped to USD $1,296.80, adding around USD $4. Chinese interest was once again prevalent to underpin the early session bid tone, seeing bullion to a USD $1,298.30 high as the on-shore premium held toward USD $6 relative to loco London gold. Afternoon trade saw USD/JPY extend earlier weakness to push below 112.00, keeping bullion price action buoyant into European hours. Top-side targets for the yellow metal extend to the USD $1,300 pivot point and USD $1,315 - $1,320 above this, while initial support sits toward the Thursday New York low at USD $1,288. Data releases today include Markit manufacturing / services / composite PMI prints from France, Germany and the Eurozone, Canadian CPI and U.S. Markit manufacturing / services / composite PMI prints.

 

Although the information in this report has been obtained from and is based upon sources 1StopGold believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute 1StopGold' judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of an investment. This report does not consider or take into account the investment objectives or financial situation of a particular party.

DAILY REPORT : Monday 18 Sep 2017

MACRO: U.S. retail sales disappointed during August, sliding -0.2% MoM (exp: +0.1%) to follow a downwardly revised +0.3% (prev: +0.6%) during July. August's soft figure was the largest fall in six months, however indications are that the weakness predominately stems from a -1.6% fall to motor vehicle sales due to disruptions caused by Hurricane Harvey. Declines to both July and June, however indicate that consumer spending may be moderating following a strong second quarter. On an annualised basis sales increased +3.2% YoY, while core sales (ex-auto, gas, building materials and food) dipped -0.2% MoM (exp: +0.2%) to follow a +0.6% gain during July. Industrial production in the U.S. fell for the first time in seven months during August, collapsing -0.9% MoM (exp: +0.1%) from an upwardly revised +0.4% (prev: +0.2%) during July. The monthly decline was the largest since May 2009 and predominately a result of storm effect on oil and gas drilling, as well as food processing. U.S. equities continued to run higher on Friday, booking weekly gains as investor's shrugged off geopolitical concerns. The DJIA added +0.29% to end the session at 22,268.34 points, the sixth consecutive positive session for the bourse and the fourth consecutive record close on the way to a +2.2% weekly return. Gains to utilities (+0.75%) and financials (+0.48%) saw the S&P 500 +0.18% higher to a fresh record close of 2,500.23 points, ending the week with a +1.6% gain. The Nasdaq Composite fell just short of a record close, posting a +0.30% gain to 6,448.467 points and a weekly return of +1.4%. Oil futures edged higher on Friday, booking the largest weekly gain since late July on a mix of global supply issues and a further decline to U.S. active oil rigs, down 7 to to 749. WTI ended trade on Friday +0.1% higher at USD $49.81 per barrel after climbing back above USD $50 intra-session, while Brent crude tacked on USD $0.15 or +0.3% to USD $55.62 per barrel. On a weekly basis WTI surged +5.1% and Brent jumped +3.4%, both of which marked the largest weekly gain since July 28. Markets in Europe sunk on Friday as a soaring pound weighed upon regionals. U.K. stocks fell to the lowest level since late April following comments from traditionally dovish Monetary Policy Committee member Gertjan Vlieghe noting that interest rates may need to go up in the coming months. The U.K. FTSE 100 ended the session -1.10% lower, the Stoxx Europe 600 declined -0.28% and the German Dax eased -0.17%.

PRECIOUS: Talk out of the U.S. on the weekend regarding a peaceful resolution to tensions on the Korean peninsula had bullion under pressure during Asian trade on Monday, while further dollar strength kept rallies short lived. Early session pricing saw gold underneath Friday's low print in thin trade on account of a Japanese holiday, making light work of USD $1,320 to touch a USD $1,315 low pre-China. Early interest out of Shanghai saw on the on-shore premium spike to around USD $7 over loco London gold and with it spot to USD $1,319.75, however offers around the USD $1,320 pivot point saw the rally soon run out of steam. Afternoon pricing saw further dollar strength weigh upon bullion, seeing the metal once again test a break below USD $1,315 as Europe opened, perhaps saved from further weakness by continued interest during China's afternoon session. The greenback continues to drive bullion price action (particular focus on UST yields) and we expect to see choppy price action in the lead up to Wednesday's FOMC meeting, with participants expecting the Federal Reserve to announce plans to begin its balance sheet tapering in addition to hints regarding a potential interest rate increase in December. Broad short-term resistance for gold sits around USD $1,320 - $1,325, while strong down-side support around USD $1,300 should restrict further declines unless the U.S. and North Korea come to an unlikely understanding. It is worth noting that the latest COTR shows still generally high positioning, with gold adding over 1 million ounces last reporting period (increase in longs the main driver) to now sit toward 80% of all-time high positioning. Silver continues to trade heavily after losing touch with USD $18, with down-side targets now extending to USD $17.50 and the 200 DMA around USD $17.20. The standout on Monday was undoubtedly palladium, ripping higher in volatile afternoon trade to add +1.7%, searching for liquidity with TOCOM closed. Data releases today include Eurozone CPI and U.S. NAHB housing data.

 

Although the information in this report has been obtained from and is based upon sources 1StopGold believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute 1StopGold' judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of an investment. This report does not consider or take into account the investment objectives or financial situation of a particular party.

DAILY REPORT : Wed 27 Sep 2017

MACRO: Federal Reserve Chair Janet Yellen addressed the National Association for Business Economics in Cleveland on Tuesday, and in a continuation from her FOMC press conference last week, Yellen took a hawkish stance on the path to interest rate normalisation. The Fed still expects longer-run inflation to trend toward the 2 percent target and a regular pace of rate hikes ahead is likely still warranted, with Yellen noting that, "My colleagues and I may have misjudged the strength of the labor market, the degree to which longer-run expectations are consistent with our inflation objective, or even the fundamental forces driving inflation," Although Chair Yellen pressed the case for gradual increases to the short-term interest rate, she noted that there are risks associated with moving too slowly, noting "Without further modest increases in the federal funds rate over time, there is a risk that the labor market could eventually become overheated, potentially creating inflationary problems down the road that might be difficult to overcome without triggering a recession," U.S. Republican's have put an end for now to their campaign promise to repeal and replace Obamacare, not even taking the Graham-Cassidy bill to a vote as it became evident they simply did not have the numbers to pass the bill. It now looks likely any further attempts at healthcare reform will have to wait until at least next year, maybe even longer. "We're gonna come back to this after taxes," said co-lead sponsor of the bill, Senator Lindsey Graham. The GOP holds 52 seats in the senate and needed 50 to vote in favor for the bill to pass, however Republican Senators John McCain, Rand Paul and Susan Collins came out in opposition. Consumer confidence in the U.S. declined to 119.8 (exp: 120.0) during September, pulling back from August's five month high of 120.4 (revised lower from 122.9). The main drags came from hurricane hit areas such as Texas and Florida, while the present situation index fell to 146.1 from 151.2 previously and the expectations index declined to 102.2 from 104.0 previously. New home sales in the U.S. decreased -3.4% to a seasonally adjusted annual rate of 560,000 units last month, the lowest level in eight months and likely driven by storm activity. U.S. equity markets ended Tuesday marginally mixed, easing late in trade to hand back early session gains as Federal Reserve Chair Janet Yellen hit the wires. The S&P 500 ended trade just +0.01% higher as a bounce to technology (+0.40%) helped to offset declines amongst eight of eleven components of the bourse. The DJIA booked a fourth consecutive decline to ease -0.05% to 22,284.32 points, while the Nasdaq outperformed to end +0.15% higher. U.S. treasury yields were on the march once again, seeing the ten-year 1.6bps higher to 2.2357% and the two-year 1.26bps higher to 1.4356% after the treasury sold USD $26 billion two-year notes at 1.462% yield, the highest in nearly nine years. A softer common currency saw major European bourse's eke out modest gains on Tuesday, as the dust settles following the weekend German elections. The Stoxx Europe 600 edged just +0.03% higher, while the German Dax endured whippy trade after a soft open to end the session +0.08% higher. The U.K. FTSE 100 booked a second consecutive loss on Tuesday, sliding late in trade to end -0.21% down as the pound saw strength against the euro to touch the highest level since July.

PRECIOUS: Bullion once again failed to build upon geopolitical uncertainty on Tuesday, well offered in the face of a rampant greenback to end underneath USD $1,300 and hand back -1.3% on the session. After trading bid throughout the Asian session, gold soon ran into offers once European names opened for business, sliding below USD $1,310 in early pricing, before being weighed down by a USD/JPY move through 112.00 to test support at USD $1,300. The figure broadly held in early New York trade, however Janet Yellen's hawkish speech in Cleveland gave the dollar a further leg higher, seeing gold to a USD $1,293.35 session low and unable to recover into the close. It is worth noting that ETF's accumulated 285k ounces on Tuesday, clearly happy to pick up the metal on dips. We continued to see solid physical interest from regional names during Asian trade today, reversing an early stop loss run through the overnight low to trade generally buoyant throughout the session. Once again Chinese demand underpinned the price action, however mid session USD/JPY weakness helped to keep the metal around USD $1,295 during afternoon trade. Key support continues to sit around USD $1,290 Dec (tested numerous times), while below this we will be looking to USD $1,280 - USD $1,284 (55 DMA) as the next level of support. Should weakness extend further, this could open up the 200 DMA at USD $1,246.50. Silver disappointed yesterday, unable to make a consolidated break above the 200 DMA at USD $17.15, and shed -2.2% on the way to a close well below the 100 DMA at USD $16.90. Platinum continues to soften with the majority of the active contract roll and quarter end producer selling now out of the way, while palladium is proving to be resilient, albeit range bound as the metal approaches parity with platinum. Data releases today include U.S. durable goods, capital goods and pending home sale.

 

Although the information in this report has been obtained from and is based upon sources 1StopGold believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute 1StopGold' judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of an investment. This report does not consider or take into account the investment objectives or financial situation of a particular party.

 

 

DAILY REPORT : Thursday 21 Sep 2017

MACRO: The FOMC voted unanimously to keep interest rates unchanged and announced it would begin to reduce its $4.5 trillion balance sheet in October. The method of reduction involves the Fed ending it's practice of reinvesting principal payments. Payments will only be reinvested when they exceed gradually increasing monthly caps, beginning at $10b and rising quarterly. Projections for the total number of expected rate hikes in 2017 remain unchanged with one more 0.25 point rise this year. US equities were mostly higher following the announcement, with the S&P 500 posting a fresh record high. The Dow added 41.79 points, or 0.19%, to 22,412.59; the S&P 500 edged higher 1.59 points, or 0.06% to 2,508.24, and the Nasdaq slipped 5.28 points, or 0.08%, to 6,456.044. Energy (+0.69%) and industrials (+0.68%) were the best performers while consumer staples (-0.89%) led the laggards. European shares were very narrowly mixed ahead of the announcement from across the Atlantic, the EuroSTOXX lost 0.14 points, or 0.04%, to 381.98, the German DAX inched higher 7.38 points, or 0.06%, to 12,569.17, and the London FTSE 100 declined 3.3 points, or 0.05%, to 7,271.95. The currency markets saw some decent movement as investors reacted to the FOMC announcement, the US dollar index climbed 0.68% to 92.419, the EUR traded down to 1.1873, while USD/JPY was as high as 112.48. US treasury yields were higher, the 2 year yield rose 3.71 bps to 1.4382% and the 10 year yield gained 2.65 bps to 2.2711%. In commodities news, oil prices rallied on talk of possible deeper OPEC cuts, Brent firmed 1.9% to $56.19 while WTI rose 1.88% to $50.41. Base metals were mostly higher, with aluminium (+2.45%) leading the gains. In US economic data, the National Association of Realtors said existing home sales fell 1.7% to a seasonally adjusted rate of 5.35M in August from 5.44M in July. This represents the lowest level in 12 months, with agents blaming a lack of inventory as the main driver. In Asia today, as I write the Nikkei sits at +0.20%, the Shanghai composite is at +0.04%, the Hang Seng at -0.11%, and the ASX S&P 200 at -0.8%. Tonight we have weekly jobless claims and the Philly Fed index out of the US; and consumer confidence (flash) out of the Eurozone.

PRECIOUS: Tough session for the precious as the firming US dollar, spurred on by news from the FOMC meeting, weighs on the markets. Gold opened at $1310 and firmed slightly through the day in fairly light trade, the SGE premium was at $5-6 over loco London. The market peaked at $1315 during the London AM session but found itself trading back around the opening level as NY came in. The greenback surged on the news from the Fed, USD/JPY trading above 112 for the ft time since July, and the yellow metal nose-dived, losing almost $20 to the low of $1296. A very modest bounce saw the XAU finish around the key support at $1300. Silver suffered the same fate, the grey metal shedding 30c after the announcement to test the $17 level. Palladium was the most resilient performer on the day, clawing back early losses to finish flat at $910. The Philadelphia gold and silver index dropped 2%. The SPDR gold trust holdings were unchanged at 846.03 metric tons. In todays trading, gold took a dip down to $1265 during the morning session but quickly recovered above $1300 before drifting lower through the afternoon. The SGE premium is slightly higher at $7-8 over loco London. The yellow metal is at $1296.90 as I write. Silver opened at $17.14 and has traded steadily lower through the session, the grey metal sits at $17 as I write. In the PGMs, Palladium found support early, trading to the high of $920 before giving back the gains to sit flat for the session.

 

Although the information in this report has been obtained from and is based upon sources 1StopGold believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute 1StopGold' judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of an investment. This report does not consider or take into account the investment objectives or financial situation of a particular party.

DAILY REPORT : Friday 15 Sep 2017

MACRO: North Korea fired another ballistic missile over Japan this morning, the second in as many weeks. The missile was launched from Pyongyang at 6:57am Japan time and flew over the northern island of Hokkaido, prompting the Japanese government to issue a warning to its citizens to take cover and stay away from anything that could be debris. The missile eventually splashed down in the Pacific Ocean approximately 2,000km from land. US Secretary of State Rex Tillerson issued a statement urging China and Russia to do more, "China and Russia must indicate their intolerance for these reckless missile launches by taking direct actions of their own". The UN Security Council has scheduled an emergency meeting for Friday at the request of the US and Japan. In US economic data, CPI climbed 04% in August following the modest 0.1% increase in July. The rise was the biggest since January and exceeded economists of a 0.3% increase. Energy was the most significant contributor, with oil prices climbing over the last month as Hurricane Harvey interrupted refining operations in Texas. The year on year increase in consumer prices rose to 1.9%, which is just below the Feds target rate of 2%. Core CPI, which removes food and energy from the calculation, rose 0.2% representing he largest increase in 6 months. Initial jobless claims fell by 14k to 284k in the week ending September 10, continuing jobless claims fell by 7k to 1.94M. US equities were mixed as the stronger than expected inflation data signalled the possibility of tighter monetary policy later in the year. The Dow added 45.3 points, or 0.20%, to 22,203.48, the S&P 500 fell 2.68 points, or 0.11%, to 2,495.69, and the Nasdaq slipped 31.10 points, or 0.48%. to 6,429.084. Utilities (+0.87%) and REITs (+0.58%) were the stand-outs while consumer discretionary (-0.55%) and telecoms (-0.40%) were among the laggards. European shares were mixed, the EuroSTOXX rose by 0.45 points, or 0.12%, to 381.79, the German DAX declined 13.12 or 0.10%, to 12,540.45, the London FTSE 100 dropped 84.31 points, or 1.14%, to 7,295.39. In the currency markets, the US dollar index slipped 0.41% to 92.142, the EUR traded up to 1.1921, while USD/JPY traded as low as 109.91. US treasury yields were higher, the 2 year yield rose 1.64 bps to 1.3635%, while the 10-year yield gained 0.17 bps to 2.1900%. In commodities news, oil markets were higher as Brent rallied 0.91% to $49.75 and WTI gained 0.24% to $55.29. Base metals closed broadly lower, with nickel (-1.4%) leading the losses. In Asia today, as I write the Nikkei sits at +0.61%, the Shanghai composite is at -0.32%, the Hang Seng at +0.30%, and the ASX S&P 200 at -0.69%. Tonight we have retail sales, the Empire State Index, industrial production, capacity utilisation, business inventories, and consumer sentiment out of the US; and balance of trade, labour cost index, and wage growth out of the Eurozone.

PRECIOUS: Volatile session for the precious on stronger than expected US inflation data. Gold opened at $1323 and was quickly testing the $1320 level as bullish sentiment in USD lingered from the night before. The SGE premium was higher at around $5-6 and there was decent buying out of China which supported the market. London were on the bid early, squeezing the market to $1325 before a quick retreat to the lows. The real fun started after NY open, initially the price dropped to the days low of $1316 on release of the strong CPI numbers, but the yellow metal bounced up to $1326 in a matter of minutes. Gold pushed higher from here in choppy trade, supported by a sell off in the greenback, closing the session out around the highs at $1329. Silver traded steadily lower through the Asian session to the low $17.63, choppy trade through London AM and onwards saw the grey metal oscillate within a 10c range before printing the high of $17.78 just prior to close. Palladium was disappointing, back above $940 during Asian hours before sliding to a low of $926. The Philadelphia gold and silver index added 0.52%. The SPDR gold trust holdings were unchanged at 838.64 metric tons. Today's trading has been surprisingly uneventful given the news from North Korea this morning. Gold firmed a few dollars following the Asian open, trading as high as $1334 before coming off the boil and consolidating around the opening levels. The SGE premium has pulled back a little from yesterday to trade between $2-4 over loco London prompting some selling out of China. The yellow metal is at $1330 as I write. Silver has traded in line with gold, popping up over $17.80 earlier and drifting to sit at $17.75 as I write. PGMs are creeping into positive territory, platinum and palladium are at $980 and $926 respectively. The outlook for gold is looking more positive following a fairly emphatic rejection of the $1320 support overnight. Investors will be looking for a sustained move above $1235 as potential for a push higher.

 

Although the information in this report has been obtained from and is based upon sources 1StopGold believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute 1StopGold' judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of an investment. This report does not consider or take into account the investment objectives or financial situation of a particular party.

DAILY REPORT : Tuesday 26 Sep 2017

MACRO: News out of Japan during late Asian trade on Monday, with Prime Minister Shinzo Abe announcing he plans to dissolve parliament on Thursday and send the country to the polls next month. In an opportunistic play, Mr Abe has called the election following a weekend survey by the Nikkei newspaper showing his Liberal Democratic Party would get 44 per cent of the vote relative to 8 per cent for the opposition Democratic Party. North Korea ratcheted up the rhetoric between themselves and the U.S. on Monday, accusing President Trump of declaring war on the hermit state. Speaking in New York, North Korean Foreign Minister Ri Yong Ho told reporters, "Since the United States declared war on our country, we will have every right to make countermeasures, including the right to shoot down United States strategic bombers even when they are not inside the airspace border of our country." In response, the Pentagon said it would be providing President Trump with "options", should the rouge state continue with their provocative actions. The Chicago Fed's national activity index slipped into negative territory during August, falling to -0.31 (exp: -0.25) to follow an upwardly revised +0.03 (prev: -0.01) during July. Factory output and consumer spending were the main drags on the headline figure, while employment-related indicators held within positive territory. The less volatile three-month moving average inched lower to -0.04 in August from a flat read in July. Meanwhile the Dallas Fed reported manufacturing activity across Texas pushed higher during September, as the general business activity index increased to 21.3 (exp: 11.5) from 17.0. The production index, a key measure of state manufacturing conditions, slipped to 19.5 from 20.3 previously, new orders rose to 18.6 from 14.3 previously and the index of future business activity jumped to 34.5 from 29.2 in August. Equity markets in the U.S. eased overnight, seeing tech-led weakness as Apple shares declined following reports the company had requested parts suppliers in Taiwan to withhold parts of shipments. The S&P 500 saw weakness across technology (-1.42%) offset gains to energy (+1.47%) and utilities (+0.85%) as the bourse closed -0.22% lower at 2,496.66 points, while the DJIA shed -0.24% to 22,296.09 points and the Nasdaq Composite sunk -0.88% to 6,370.593. U.S. treasuries pushed higher on Monday as yields softened to follow the lead of European counterparts. The ten-year shaved off around 4bps to 2.220%, while the two-year eased 1.4bps to 1.425%. European equities ended generally higher on Monday, with investor's still considering the ramifications of the weekend German elections. The Stoxx Europe ended trade +0.18% higher, while the German Dax eked out a modest +0.02% return. In the U.K. the FTSE 100 pulled back -0.13% as a stronger pound and declines to financial and mining shares weighed upon the bourse.

PRECIOUS: The geopolitical risk premium returned to bullion on Monday following comments from North Korean Foreign Minister Ri Yong Ho, accusing the U.S. of declaring war on the hermit state. After threatening a consolidated break underneath USD $1,290 throughout Monday's session, the yellow metal ripped higher once Mr Ri commented that North Korea has the right to shoot down United States airplanes, even if they are not within North Korean airspace. The headlines had gold back above USD $1,300 for the first time since last weeks FOMC meeting, as the greenback reversed course against the Yen to see the pair back below 112.00. Gold vols reacted to the overnight price action, edging higher as 1m pushed to 11.5 (traded 10's not long ago) and 12m above 13. Gold held relatively firm during Asian hours on Tuesday following the New York price action, seeing moderate interest hold bullion around USD $1,310, with a brief push above the overnight high late in afternoon trade. The recent sustained move below USD $1,300 is likely to have removed some of the weak long positioning in the market, with this evidenced by the latest COTR data. Although tensions on the Korean peninsula have escalated over the past 24 hours, it remains to be seen whether the geopolitical risk premium built into gold will be sustainable over the medium-long term, rather than once again being a short term energy hit. It is worth noting that there is decent interest tomorrow at USD $1,300 October Comex expiry, therefore we are likely to see bullion pegged around this level. Near-term resistance for the yellow metal sits toward the USD $1,317 - $1,320 pre-FOMC high, while initial support sits around USD $1,300 and below this USD $,1288.50. Data releases today include German import prices, U.S. new home sales, conference board consumer confidence and the Richmond fed manufacturing index.

 

Although the information in this report has been obtained from and is based upon sources 1StopGold believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute 1StopGold' judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of an investment. This report does not consider or take into account the investment objectives or financial situation of a particular party.

DAILY REPORT : Wed 20 Sep 2017

MACRO: A powerful magnitude 7.1 earthquake has collapsed buildings in Mexico City and reportedly killed over 145 people across central Mexico. The Earthquakes epicenter was just 60 miles south of the capital in Chiautla de Tapia and struck on the anniversary of the devastating 1985 earthquake. U.S. President Donald Trump addressed the U.N. General Assembly on Tuesday, threatening to "totally destroy" North Korea if the hermit state attacks the U.S. or its allies, however adding further that "hopefully this will not be necessary." In a wideranging 40 minute speech in New York, President Trump identified rouge regimes as the "scourge of our planet today", while also taking aim at the "reckless regime" and "corrupt dictatorship" of Iran. In reference to Iran and the nuclear deal signed under the Obama administration, Mr Trump said "We cannot let a murderous regime continue these destabilising activities while building dangerous missiles and we cannot abide by an agreement if it provides cover for the eventual construction of a nuclear program," Housing starts in the U.S. declined for the second consecutive month during August, easing -0.8% MoM (exp: +1.7%) to follow an upwardly revised -2.2% (prev: -4.8%). Persistent weakness within the often volatile multi-family home segment weighed upon the headline figure to offset a rebound within the single-family home segment. Building permits meanwhile surged +5.7% MoM (exp: -0.8%) to a seven month high during August, however permits for single family homes (the largest share of the housing market) declined. Import prices in the U.S. increased by +0.6% MoM during August (exp: +0.4%) amid increases to the cost of petroleum products, marking the largest increase in seven months. On an annualised basis prices jumped +2.1% YoY (exp: +2.2%) from +1.2% previously. Another session and another record, as all three of the major U.S. equity bourse's booked fresh record high closing levels on Tuesday. The DJIA added +0.18% to 22,370.80 points, extending its winning streak to eight consecutive sessions. Gains across financials (+0.80%) and utilities (+0.76%) saw the S&P 500 +0.11% higher to its 36th record closing high this year, while the Nasdaq Composite tacked on +0.10% to 6,461.323 points for the 49th record close this year. Markets in Europe edged higher on Tuesday, swinging between gains and losses as investor's traded cautiously heading into the two-day FOMC meeting. The Stoxx Europe 600 ended trade with a modest +0.4% gain, while the German Dax added just +0.02% as ZEW survey results, expectations and current situation, both beat forecasts. In the U.K. a softer pound and gains to supermarkets saw the FTSE 100 end the session +0.30% higher.

PRECIOUS: After once again seeing solid underlying interest above USD $1,300 on Tuesday, bullion pushed modestly higher during Asian trade today as participants positioned (or un-positioned) themselves into the upcoming FOMC announcement. A softer USD during late New York trade saw gold bounce off the recent USD $1,305 - $1,310 support level, closing toward the session high print to de-couple somewhat from rising UST yields following President Trump's tough rhetoric toward North Korea at the U.S. General Assembly. Interest around USD $1,310 throughout Wednesday's Asian session saw the figure act as a support level, withstanding early session offers to once again push higher following the CNY fix. We once again saw volatile USD/CNH price action today, with the pair falling from 6.5840 pre fix to a low around 6.5667 during Shanghai's pre-lunch session. Decent physical interest out of the far East kept the yellow metal buoyant post-fix, while early European USD offers weighed upon the greenback to see bullion push toward USD $1,315 and test outside of the recent resistance. Expectations are that bullion will hold the recent USD $1,305 - $1,315 range leading into today's FOMC announcement, with the broader market searching for details regarding the Fed's balance sheet normalisation in addition to the timing of interest rate increases (December still sitting around 55%). The key for the yellow metal is still the USD $1,300 support level and should Janet Yellen stick to the expected script today we should see the figure hold with underlying geopolitical risks remaining. After once again surviving a test of the USD $17.10 support in New York on Tuesday, silver pushed off the 200 DMA late in trade and continued its upward trajectory during Asian hours today. The key for the grey metal will be holding broad support between the USD $17 pivot point and USD $17.10 into tonight's FOMC announcement, while top-side targets extend to USD $17.50. Platinum continues to scramble for bids after testing the 100 DMA at USD $949 on Tuesday, while palladium has seen large liquidation to be -9% lower from the USD $999 high only two weeks ago, as weak longs head for the exits. All eyes are undoubtedly on today's FOMC announcement and associated commentary, while in the lead up we see U.K. retail sales and U.S. existing home sales,

 

Although the information in this report has been obtained from and is based upon sources 1StopGold believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute 1StopGold' judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of an investment. This report does not consider or take into account the investment objectives or financial situation of a particular party.

DAILY REPORT : Thursday 14 Sep 2017

MACRO: U.S. producer prices rebounded during August, increasing +0.2% MoM (exp: +0.3%) to follow a -0.1% fall during July. On an annualised basis prices gained +2.4% YoY (exp: +2.5%) after advancing +1.9% YoY during July. Underpinning the headline print were strong gains to energy prices, while core PPI (ex food and energy) inched up +0.1% MoM (exp: +0.2%) from -0.1% previously and +2.0% YoY (exp: +2.1%) from +1.8% previously. Equity markets in the U.S. eked out modest gains on Wednesday, however it was enough to see all three of the major bourse's end at record closing levels for the second straight session. Strength to energy (+1.24%) and financials (+0.21%) was enough to overcome broader weakness and have the S&P 500 +0.08% higher at the closing bell, ending on the session high print of 2,498.37 points. The DJIA tacked on +0.18% to 22,158.18 points, while the Nasdaq Composite added +0.09% and end the session at 6,460 points. Oil futures booked a third consecutive gain on Wednesday, supported by an International Energy Agency report noting that global crude production fell during August for the first time in four months. WTI jumped +2.2% to USD $49.30 per barrel, marking the highest close since early August, while Brent crude added +1.6% to USD $55.16 per barrel, the highest finish since mid April. Equities across Europe ended mixed on Wednesday, while in the U.K. the FTSE 100 eased -0.28% as a stronger pound piled pressure on the bourse. The Stoxx Europe 600 narrowly snapped a five session winning streak to close just -0.08% down, while the German Dax outperformed to add +0.23%.

PRECIOUS: Bullion fell for a third consecutive session on Wednesday, losing touch with USD $1,330 to test key support around USD $1,320 as the greenback surged higher. Relatively muted price action throughout Asian and European trade gave way to a heavy New York session, with the yellow metal trading well offered as U.S. yields marched higher and USD/JPY consolidated above 110.00 following a test below the figure in Europe. Participants were happy to sit on the sidelines during Asian trade today, awaiting the U.S. inflation data to drive direction. As we have become accustomed to seeing in recent days, bullion was broadly supported by underlying interest out of China, however unable to make any further headway higher. The yellow metal saw a sharp sweep through the USD $1,320 support leading into the Shanghai open, however was largely range bound above this level for the remainder of trade amid relatively thin volumes. Bullion continues to see broad support around USD $1,320, while should weakness continue, expectations are that interest between USD $1,300 - $1,310 will be supportive to restrict further declines. Focus tonight turns to the SNB and BOE monetary policy announcements, while today in the U.S. all eyes will be on the inflation report.

 

Although the information in this report has been obtained from and is based upon sources 1StopGold believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute 1StopGold' judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of an investment. This report does not consider or take into account the investment objectives or financial situation of a particular party.

DAILY REPORT : Monday 25 Sep 2017

MACRO: Weekend German elections have seen Chancellor Angela Merkel narrowly hold onto power for a fourth term, however gains to the far right movement will see her conservatives forced to form a coalition, as support for Merkel's conservative bloc slumped to the lowest level since 1949. The anti-immigration Alternative for Germany (AfD) were the major surprise, winning 13.8% of the vote and entering parliament for the first time. U.S. Republican's are once again facing an uphill battle to repeal and replace Obamacare, with John McCain of Arizona and Rand Paul of Tennessee on the record as having said they would vote against the Graham-Cassidy bill and Susan Collins of Maine announcing on Sunday that she has 'a number of serious reservations'. With 48 Democrat's in opposition, it would only take three Republican defections to defeat the bill. IHS Markit reported U.S. services activity remained robust during September, however the manufacturing sector held a subdued pace. Markit's services PMI print eased only marginally from August's 21-month high, printing 55.1 (exp: 55.8), while the manufacturing PMI inched higher to 53.0 (exp: 53.0) from 52.8 previously, as new orders expanded at one of the slowest rates recorded over the past 12-months and output rates were unchanged from August's 14-month low. Chief Business Economist at IHS Markit, Chris Williamson noted with the release; "Although the September surveys indicated a moderation in growth of business activity, the overall rate of expansion remained robust." Equity markets in the U.S. closed narrowly mixed on Friday, recovering from early session weakness as investor's set aside concerns over North Korea and healthcare stocks rallied following news Senator John McCain wouldn't support the latest Republican healthcare bill. The S&P 500 saw six of eleven main sectors end higher as the bourse edged to a +0.06% gain at 2,502.22 points, while the DJIA slipped just -0.04% lower to 22,349.59 points. On a weekly basis the S&P 500 added close to +0.1% and the DJIA gained +0.4%. The greenback experienced broad based weakness on Friday, however was able to pare losses during New York hours as geopolitical concerns abated somewhat. The DXY index closed just -0.01% lower after reversing declines against the yen, closing back above 112.00 following a 111.65 low print in Asia. Upbeat Markit PMI data out of France, Germany and the Eurozone helped to support regional bourse's on Friday, however gains were tempered somewhat in Germany leading into the weekend elections. The Stoxx Europe 600 ended trade with a modest +0.09% gain as a stronger euro restricted further wins, while the German Dax pulled back -0.06% as investor's traded cautiously after poll results indicated the German far right movement would see strong support on the weekend. In the U.K. the FTSE 100 outperformed to end +0.64% higher, seeing strength from an ailing pound following a speech from Theresa May in Florence regarding Brexit negotiations.

PRECIOUS: A stronger dollar on Monday wrestled away any risk premium that gold had accumulated on the back of recent posturing by Donald Trump and Kim Jong-un, with large early session volumes seeing bullion toward Friday's New York low. Weekend sanctions imposed by China on North Korea and election results out of Germany likely contributed to the early risk tone, as a sharp stop loss run on the previous session low opened up gold to a brief test below USD $1,290. The metal saw interest return once China opened for business, with bullion still holding a USD $7 premium relative to loco London gold, while a tempering of early dollar strength during afternoon trade kept price action buoyant above USD $1,290. The key for gold over the short-term will be holding support around USD $1,288.50, a level which was tested on multiple occasions last week. Should bullion break further away from USD $1,300 we will be looking to USD $1,280 - USD $1,284 (55 DMA) as the next level of support, while a move below this could open up the 200 DMA at USD $1,246.50. CFTC positioning remains stretched, however has pulled back as a result of long liquidation during the week to September 19, while silver positioning has softened, predominately a result of increased shorts. Silver traded in a relatively resilient fashion during Asian trade today, withstanding an initial move below USD $17 to see underlying support around USD $16.90 restrict further declines. Both platinum and palladium edged higher during Asian trade today, with the latter building upon Friday's +0.8% gain. Data releases today include German IFO survey results, Chicago Fed Nat Activity Index and the Dallas Fed Manufacturing Activity Index.

 

Although the information in this report has been obtained from and is based upon sources 1StopGold believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute 1StopGold' judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of an investment. This report does not consider or take into account the investment objectives or financial situation of a particular party.

DAILY REPORT : Tuesday 19 Sep 2017

MACRO: The National Association of Home Builders (NAHB) reported sentiment among U.S. builders declined by more than expected during September. Higher prices for materials and labor shortages following recent weather events weighed upon sentiment as the NAHB index dipped to 64 (exp: 67) from 67 previously. Regionally, confidence was highest in the West and Northeast, while the Midwest fell to 59 from 65 to mark the lowest level since November and confidence in the South dropped to 65 from 69. Concerns over a flare up on the Korean Peninsula continue to abate, with U.S. Secretary of State Rex Tillerson noting during an interview with CBS that the U.S. seeks a "peaceful solution" and want to "bring North Korea to the table for constructive, productive dialogue." U.S. equities continued where they left off last week, pushing higher on Monday to see the DJIA and S&P 500 end at fresh record closing levels. The DJIA closed +0.28% higher at a fresh record of 22,331.35 points, the bourse's seventh consecutive session gain and fifth consecutive record close. Strong gains to financials (+1.02%) and technology (+0.96%) helped propel the S&P 500 +0.15% higher to a fresh record close 2,053.87 points, while the Nasdaq Composite added +0.10% to end just shy of a record. Oil futures endured whippy trade on Monday, however ended with modest gains after recovering from declines driven by an EIA report showing an expected increase in U.S. output of 79,000 barrel per day in October. WTI was unable to consolidate a move above USD $50 per barrel and closed +0.2% higher, at USD $49.90 per barrel, while Brent crude ended generally flat. The greenback ended trade higher on Monday, hitting a near two month high against the yen as participants turn focus to the upcoming FOMC meeting. The DXY index posted a +0.2% gain to 92.05, seeing further support from a de-escalation in tensions on the Korean peninsula following U.S. Secretary of State Rex Tillerson's comments. Equities in the U.K. inched higher on Monday, broadly supported by a softening pound, while BAE Systems jumped over +3% following news that the British and Qatari Governments had signed an agreement for the potential sale of 24 Eurofigher Typhoon combat jets. The FTSE 100 ended trade +0.52% higher, the Stoxx Europe 600 tacked on +0.33% as Eurozone inflation data hit expectations and the German Dax posted a +0.32% to shake off a Bundesbank report showing some economic indicators were reportedly more subdued than expected.

PRECIOUS: Gold traded under pressure once again on Monday, falling toward USD $1,300 to book its fifth loss in six sessions as a return to risk weighed upon safe haven assets. Bullion ended the session at the lowest level in nearly three weeks as the greenback turned bid, geopolitical tensions eased and UST yields pushed higher. We saw thick price action around USD $1,306 - $1,308 as a mixture of stops and TP orders were filled, likely removing some of the short term players in addition to those shorts that have been instigated over the past week. Bullion traded relatively range-bound during Asian trade today, however had to survive early session weakness after opening initially offered during Chinese trade following a leg lower to both CNY and CNH after the USD/CNY fix. USD/CNH extended to a 6.5960 high after trading around 6.5700 pre-fix, and with it saw gold pull back from a move toward USD $1,310. Interest toward the overnight low print kept bullion buoyant during afternoon pricing, however offers around USD $1,310 kept a lid on top-side moves. Gold continues to trend lower into Wednesday's FOMC meeting, however we are seeing interest toward USD $1,300 restrict further down-side moves (still an underlying geopolitical bid) and expectations are this will continue. Should initial support around USD $1,300 be broken, we look to USD $1,293 (Aug breakout point) and below this USD $1,285 (50 DMA). Restrictive price action toward USD $1,310 - $1,315 and above this USD $1,320 are likely to keep downwards pressure on the metal into the FOMC meeting. Silver extended recent weakness during New York hours on Monday, sliding through USD $17.50 to a USD $17.065 session low. The grey metal saw interest underneath USD $17.20 (around the 200 DMA) throughout Asian trade today to restrict a further test of Monday's low print, however it will need to hold the key USD $17 level into Wednesday's FOMC meeting, otherwise we are likely to see USD $16.50 - $16.75. Data releases today include German and Eurozone ZEW survey results, U.S. housing starts, the U.S. current account balance and U.S. import prices.

 

Although the information in this report has been obtained from and is based upon sources 1StopGold believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute 1StopGold' judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of an investment. This report does not consider or take into account the investment objectives or financial situation of a particular party.

DAILY REPORT : Wed 13 Sep 2017

MARKETS/MACRO: The USD retained its firmer tone overnight as US bond yields continued to edge higher and some of the post-ECB rally in EUR/USD unwound. U.S. equities rose to fresh all time highs yesterday as financials received a boost from the rising yields, however price action was tempered somewhat by selling pressure in the Tech sector. Wall Street also digested some positive rhetoric from Treasury Secretary Steven Mnuchin on tax reform. The Dow Jones gained +61.49 points, or +0.28%, to 22,118.86, the S&P500 rallied +8.37 points, or +0.34%, to 2,496.48 and the Nasdaq inched up +22.018 points, or +0.34%, to 6,454.282. The best performing sector was Teleco's (+1.4%) and the worse performing sector was Utilities (-1.75%). European equities rose for a fifth straight day with financials in the drivers seat spurring markets higher. The FTSE Euro First 300 index accelerated +8.08 points, or +0.54% to 1,499.27 and the Euro Stoxx 600 jumped 1.99 points, or +0.52% to 381.42. Regionally the DAX increased +0.4%, CAC40 +0.62%, while the FTSE100 lagged, down -0.17%. Crude prices pushed higher (WTI +$0.33, +0.69%, to US$48.4 a barrel) as news of an extension of the current production cut agreement continued to swirl around the market. It emerged overnight that OPEC is discussing the possibility of extending the current agreement for at least another three months (end of Q2 - 2018). This came as the group released its latest estimate of supply and demand fundamentals in the global market, where tt raised its forecast for demand in 2018, however it only expects the market will require an additional 400k b/d in 2018 to 32 mio b/d. It also reported that OPEC production for August had fallen 79k b/d to 32.75 mio b/d. Prices were also buoyed by reports that refiners in Texas are continuing to ramp up after the hurricane.

The U.S July JOLTS report came in at a record high, which, coupled from comments from US Treasury Secretary Mnuchin expressing confidence about getting tax reform through, underpinned expectations that solid US growth will continue. The Labour Department reported that job openings edged up to 6.17 million in July from 6.12 million in June. It’s the first time openings have topped 6 million for two straight months since the government began keeping track in 2000. In July, hiring was led by companies involved in services such as transportation and warehousing, reflecting an ongoing shift toward online shopping. U.S August NFIB small business optimism lifted too (105.3 vs 104.8 expected) as sentiment amongst the small business community remains high. Expectations for sales rose, the Capital Spending Index increased and selling prices firmed. The Headline Index is hovering around post-GFC highs. Meanwhile in the UK, August CPI exceeded expectations coming in at +0.6% MoM (+0.5% expected, -0.1% prior), and core CPI showed a broad based rise to +2.5% YoY (+2.7% expected), improving on the +2.4% a month earlier. The headline numbers are within the levels anticipated by the BoE, but the data gave GBP support ahead of this week’s BoE meeting (where no change is expected).

Treasury Secretary Mnuchin said he is "hopeful" that tax reform would be accomplished by year's end, adding the administration is thinking about backdating any reform to January 1. Backdating "is still something we are considering and it would be a big boon for the economy," he said. This certainly helped to prop up the risk on move. Elsewhere, President Trump and congressional law-makers signalled that more steps need to be taken to rein in North Korea's rapidly developing nuclear program despite the United Nations Security Council's unanimous vote to pass additional sanctions on the rogue nation. Trump noted the 15-0 UN vote during a meeting with Malaysian Prime Minister Najib Razak, but said they are "just another very small step" and "not a big deal". He also suggested that he doesn't know "if it will have any impact". Trump added that the sanctions pale in comparison to "what ultimately will have to happen".

PRECIOUS: Gold managed to bounce off the late European lows to close just off the days highs on Tuesday ($1331.20/60). The yellow metal opened slightly higher yesterday in Asia, pushing up towards $1329 but ultimately failing on any follow through interest, failing to get back through $1330. Early Tokyo based selling saw us drop back a few dollars towards $1325 on fairly modest volume compared to what has been seen over the past week or so. Chinese banks were buying once the SGE session commenced on the back of the lower prices, as widely expected. It was not in a significant size however and the offering on Ecomex was enough to offset the Chinese demand. Gold remained range-bound into the afternoon as a result, hovering just above $1325. London didn't do a great deal, the gold and silver continuing to track sideways throughout. Throughout the U.S day, despite the dollar and yields grinding their way north, gold continued to slowly rise with some macro demand and longer term players looking to book some profits. In the end, the metal managed to hit a peak of $1331.75 before closing just off this - an admirable performance given the 'risk on' market conditions.

A bit of action was witnessed on the market open this morning, with a few stops being tripped right on the open in thin liquidity. Stops just above the Tuesday high ($1332) were tripped and the market quickly jumped to just below $1335 before just as sharply receding back to $1333. Following that, gold proceeded to edge lower with some early Japanese and Chinese traders on the offer as a result of the stronger dollar. The yellow metal slowly ticked lower over the next few hours with moderate 2 way volume trading through Ecomex and the SGE. Silver pushed higher in line with gold right on the open but was quickly sold into above $17.90, with some large visible offers on Ecomex capping proceedings. PGM's have traded flat so far and the volumes have been tiny. In other markets, equities are currently mixed the Nikkei up +0.5%, while the Shanghai Composite and Hang Seng are lower at -0.1% and -0.35% a piece. USD is a little softer vs the majors with flows remaining light throughout the day. USDJPY is still holding above 110, but we have tested lower on a few occasions already. On the data calendar today look out for U.K employment data, EuroZone industrial production and U.S. PPI. We expect the precious complex to continue to consolidate for now and look to buy dips $1310-20.

 

Although the information in this report has been obtained from and is based upon sources 1StopGold believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute 1StopGold' judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of an investment. This report does not consider or take into account the investment objectives or financial situation of a particular party.