Why Gold it Tumbling 2% Today | The Mesh Report

Why Gold it Tumbling 2% Today

The Gold Enthusiast March 30, 2021 Comments Off on Why Gold it Tumbling 2% Today

Gold and silver prices are solidly lower and hit multi-week lows in early U.S. trading Tuesday, amid a rally in the U.S. dollar index, lower crude oil prices and rising bond yields. Furthermore, trader and investor risk appetite remains upbeat enough to keep the global stock markets buoyant. April gold futures were last down $25.70 at $1,686.60 and May Comex silver was last down $0.481 at $24.29 an ounce.

Global stock markets were near steady to mostly firmer overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. Risk appetite is keener Tuesday following a bit of concern Monday regarding the unwinding of stock positions of a big investment fund, Archegos, after that firm became over-leveraged. A few individual stocks have been impacted but not the general stock and financial markets—at least not yet. Most market watchers reckon the matter will fade away with no contagion effect.

Traders and investors are generally upbeat amid a strengthening U.S. economy, more and more people getting the Covid vaccine, and with President Biden is set to unveil on Wednesday the first of two expected portions of the next phase of his U.S. economic agenda. That package would cost $3 trillion to $4 trillion. However, somewhat tempering enthusiasm in the marketplace is an uptick in Covid infections in Europe and now the U.S.

The key outside markets today see the U.S. dollar index higher and hitting another 4.5-month high overnight. Nymex crude oil prices are lower and trading around $60.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 1.772%–hitting a 14-month high overnight.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the monthly house price index, the S&P-Core-Logic home indexes, and the consumer confidence index.

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