Stock Markets Make Strong Recoveries, as US/China Tariff Dispute Eases; Precious Metals on a Tear - Gold Trades at All-Time High Above $4,062, Silver Above $51.50, Palladium and Platinum Also Gain
- The number one story in the market as Monday gets underway for many is the same story from late last Friday - a new US/Cina trade dispute over Chinese raw earths leading to a tariff threat from Trump at 100%. This sent stock markets flying lower into the week's close, but in recent hours President Trump expressed optimism that a deal would be reached with China, and this triggered a very strong rebound in futures and off-hours trading, which looks set to hold. This has sent major US stock indices strongly higher, with the S&P 500 Index up by more than 2% and the tech-based NASDAQ 100 Index up by almost 3%. The rare earths dispute would affect tech companies most strongly.
- Precious metals are in strong focus as they all continue to rise with strong bullish momentum. Notable highlights:
- Gold reached a new record high at $4,077 during the Asian session. It is trading in blue sky and there is no telling how high it might rise - it might also be a bullish sign that there was little resistance at $4,000 to the continued advance.
- Silver is rising strongly to make a new all-time high price at $51.70, well beyond the 1980 "Hunt Brothers" high. Like Gold, it can keep going to any level, and it broke the big round number at $50 quite easily.
- Platinum is rising, but it has not yet tested its high made last week. Although Platinum futures are too large for most retail traders to safely trade, exposure to the price of Platinum can be obtained via the PPLT ETF which is affordable.
- Palladium is rising, but it has not yet tested its high made last week.. Although Platinum futures are too large for most retail traders to safely trade, exposure to the price of Platinum can be obtained via the PALL ETF which is affordable.
- Trend and momentum traders will be interested in being long of Gold and Silver, and probably Platinum and Palladium also.
- In the Forex market, the Australian Dollar has been the strongest major currency since today's Tokyo open, while the Japanese Yen has been the weakest. The USD/JPY currency pair is in some focus after triggering a long trade entry at most trend-following funds. The other commodity currencies are doing well (CAD, NZD) while safe havens are not doing well.
- Risky assets are generally higher on the US stock market rebound.
- It is a public holiday today in the USA, Canada, and Japan, so US and Canadian markets will be closed, and trading in the USD and especially the USD/CAD currency pair will likely have thin liquidity today. However, Trump's comments have made for a fairly active Asian market session, so maybe there will be more liquidity than would otherwise be expected.
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