Take a look at what has been happening in the precious metals market this week! Information provided comes straight from the experts at Dillon Gage.
Gold’s week started stronger on the wings of a continued weaker dollar with U.S. Stock Funds beginning their second week of outflows, redeeming almost $2.4 billion dollars. Exits from these products since March hit a combined total of over $20 billion dollars.
The Asian metals markets started the week with a boost across the board from Chinese President Xi’s indications that he will spend 78 billion for infrastructure projects. Meanwhile, good physical silver buying emerged in Asia as tensions with North Korea continued to be on the minds of most in that region.
With the French Presidential Election over, most European investors launched the week feeling better about their currency following last week’s $6 billion flow into European stock funds. Earnings growth in Europe have been better than here in the States, so some traders have seen a rotation out of metals and into equities since the French election.
Strong inflows continued in the platinum ETFs at the start of platinum week, as investors and commodity funds seem to have a new-found interest in the PGM arena.
As we end the week, the price of gold is virtually unchanged in light of the mixed bag of indicators swinging from a weaker dollar to stronger yields in Ten-Year Treasuries that sent mixed signals to the market. Meanwhile, equities appear to have flattened without some news to give them direction.
Author Name: Dillon Gage
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