Daily Market Review – May, 18

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Gold Spot Price today increased to $1,253.50 (-0.59%) per ounce, Silver Price $16.63 (-1.36%), Platinum Price $935.00 (-0.95%), Palladium Price $764.00 (-2.05%), Dow Jones index 20620.07 (0.06% increase).

U.S. Dollar vs Precious metals

The U.S. dollar index has moved to its daily high on Thursday and is trading slightly up ahead of midday. Gold price opened lower this morning but still remains generally well bid in the wake of the yesterday’s solid gains and the 5-day rally. The precious yellow metal stays underpinned by haven demand amid ongoing political turmoil in the US. Among other precious metals: Silver price slipped from multi-week highs today, declining below $17.00 per ounce; platinum and palladium prices are also down.

Precious metals analysts see potential for more gold gains over the next weeks as the political turmoil continues in Washington D.C. and may perhaps reduce any monetary tightening by the Federal Open Market Committee. They characterized gold as a market which “needs a story” in order to keep rallying, and since right now there are suspicions that there will be more coming out of the White House, there might be a continued safe-haven bid for gold.

Stock Market Today

U.S. stocks opened lower on Thursday due to concerns about the future of the President Donald Trump and his ability to deliver on his pro-growth agenda. However, over the trading day all three stock market indexes held higher, rebounding from the brutal selloff: S&P 500 2360.76 (+0.16%) and NASDAQ Index 6033.35 (+0.37%), Dow Jones Industrial Average 20620.07 (+0.06%).

Although stocks recorded their biggest drop in eight months, some technical analysts examined them by numbers and affirmed that they don’t see a major sell-off ahead. In fact, those stock market analysts expect a shallow pullback at best, even as stocks dropped yesterday on worries about whether the Trump administration will be able to push its pro-growth agenda through Congress. Anyhow, there are signs that investors remain skeptical, and both caution and volatility may stay high with the existing political turmoil in Washington.

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