GOLD Price Tops $2000

MARKETS

The price of gold broke the big milestone of $2000 per oz, reaching a new record high of $2021. Demand for a haven spiked following the large bomb explosion in Beirut. The price of silver gained too, though remained in the vicinity of its previous record high near $26.

Another drop in US treasury yields toward record lows and real yields falling further into negative territory has seen the US dollar resume its decline, but it remains off the lows of last week. EUR/USD is near 1.18 after holding support at 1.17, but down from the 1.19 high. USD/JPY is testing 105.5.

Asian stock markets are mixed on Wednesday with shares in China higher but Australia’s ASX turning lower by 1%. The Dow Jones closed higher for a third day on optimism US politicians will agree on a new multi-trillion-dollar stimulus bill. A 6% jump in shares of BP following its Q2 earnings release saw the FTSE 100 nudge higher in what was a mixed session for European shares.
 

GURU WISDOM

Never confuse your position with your best interest. Many traders take a position in a stock and form an emotional attachment to it. They'll start losing money, and instead of stopping themselves out, they’ll find brand new reasons to stay in. When in doubt, get out!” – Jeff Cooper
 

$2000 Gold

Demand for a haven following the blasts in Beirut that killed 70 people triggered a surge in the price of gold. Gold continues to gain ground as investors lose confidence in government-controlled currencies. House speaker Nancy Pelosi saying that Congress was having “productive” discussions is leading investors to the conclusion another big US spending bill be passed- adding even more to the national debt. That’s leading to further buying of US Treasuries, driving yields lower. Gold is trending in a mirror image to bond yields.
 

US ADP

ADP’s private payrolls report will be one to watch in the lead up to the big jobs report on Friday. Expectations are for 1.5 million versus 2.37 million prior.

There is a flood of company earnings released today, including from BMW and popular electric car-maker Nikola, which will report for the first time amid high hopes it can recreate the buzz around Tesla.